Nissan and Honda have announced they are evaluating a potential partnership aimed at tackling “the fields of vehicle electrification and intelligence.”

Automakers are racing to roll out EVs, with many setting deadlines for full EV adoption. Tesla is obviously in the lead, both in market and quality of vehicles, with many companies struggling to deliver the same quality with their EVs.

Honda and Nissan clearly believe they can accomplish more working together, and have signed a memorandum of understanding to explore a strategic partnership.

To further accelerate efforts toward carbon neutrality and zero traffic-accident fatalities, it will be essential to strengthen environmental and electrification technologies as well as software development. The two companies have reached the understanding based on the belief that it is necessary to combine their strengths and explore the possibility of future collaboration.

“It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges,” said Makoto Uchida, Nissan president and CEO. We look forward to further discussions and aim to find win-wins for sustainable growth.”

“In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda,” said Toshihiro Mibe, Honda director, president and representative executive officer. 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.”