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Rivals Honda and Nissan Explore EV Partnership

Honda Motor (HMC) and Nissan are exploring an electric vehicle (EV) partnership that will bring together two of Japan’s largest automakers at a time when many companies are scaling back their EV expansion plans amid soaring costs and slowing demand.

The two companies said Friday in a statement that they signed a memorandum of understanding to begin a feasibility study for a strategic partnership. A tie-up would help the two cut costs and achieve economies of scale at a time when Chinese EV makers like BYD (BYDDF) are coming out with cheaper offerings and Tesla (TSLA) has been offering incentives there.

“Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry,” said Honda President Toshihiro Mibe said in a statement.

Read the source article at Investopedia

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