Mitsubishi Motors joins Honda-Nissan alliance

Japanese newspaper Nikkei reported on Sunday that Japan’s Mitsubishi Motors will join the existing alliance between Honda Motor and Nissan Motor, creating a massive and influential partnership in the market, with the three companies’ combined sales of more than 8 million vehicles.

According to CNN, Nikkei said that Mitsubishi Motors, which Nissan already owns 34%, will work with Honda and Nissan to finalize the details of their strategic partnership, adding that the three companies intend to standardize operating and control software for cars.

The move comes as Nissan, Japan’s third-largest automaker, has been steadily losing market share in its two biggest markets, the United States and China, which together accounted for half of its global sales last year.

On Thursday, Nissan cut its annual revenue and profit forecast after heavy discounts and promotions in the United States wiped out almost all of its profits in the April-June quarter.

The collaboration between Nissan, Honda and Mitsubishi Motors could help Japanese automakers cut costs and boost their capabilities to face fierce competition in the electric vehicle sector, which is dominated by companies such as China’s BYD and the US’s Tesla.

Nissan and Honda said in March they were considering a strategic partnership to cooperate on producing some electric vehicle parts and using artificial intelligence in car software.

Mitsubishi Motors is already part of a long-term alliance with Japan’s Nissan and France’s Renault, and the three automakers agreed last year to restructure the alliance into a smaller but more flexible partnership.