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Mitsubishi Motors joins Honda-Nissan alliance

Mitsubishi Motors joins Honda-Nissan alliance

Japan’s Mitsubishi Motors will join the alliance between Honda Motor and Nissan Motor, creating an automotive group with total sales of more than 8 million vehicles, the Nikkei Business Daily reported Sunday.

Mitsubishi Motors, which is 34 percent owned by Nissan, will work with Honda and Nissan to finalize the details of their partnership, but the three companies plan to standardize software in the cars, Nikkei reported.

Mitsubishi Motors declined to comment on the report, while representatives for Nissan and Honda were not immediately available for comment.

The pressure is mounting as Nissan, Japan’s third-largest automaker, continues to lose market share in its two biggest markets, the United States and China, which together accounted for half of global sales in the year through March.

On Thursday, the company cut its annual forecast after a deep U.S. cut nearly wiped out first-quarter profit.

The partnership could help Japanese automakers cut costs and strengthen their fight against fierce competition in the electric vehicle space, dominated by companies such as China’s BYD and Tesla.

In China, the world’s largest auto market, Japanese brands used to be strong, but now they are facing domestic automakers that have rapidly ramped up production and won over consumers with cheap, software-driven vehicles.

Nissan and Honda said in March they were considering a strategic partnership to produce electric vehicle components, seeking to gain a greater presence in the global battery-powered vehicle market, which is expected to grow in the coming years.

Mitsubishi Joins the Premium Push Bandwagon - autojosh