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March 15 (UPI) -- Nissan and Honda said Friday they signed a feasibility study agreement to pursue a strategic partnership in vehicle electrification and intelligence. The companies said in a joint statement that the partnership will focus on automotive software platforms, core components related to EVs and "complementary products."
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"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," Nissan CEO Makoto Uchida said.
He added the companies are looking forward to further discussions for sustainable growth.
The Nissan-Honda EV collaboration is an effort to cut costs and improve competitiveness amid intensifying global EV market competition.
"We can no longer fight in the existing framework in the face of the rapid change in the industry," Honda President Toshihiro Mibe said at a news conference.
He cited the importance of achieving economies of scale for EV production and development.
According to Uchida, Nissan's existing partnership with Renault and Mitsubishi Motors is not changed by the EV agreement with Honda.
In October Honda abandoned cooperation with GM on an electric vehicle project.
"In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda.," Mibe said in a statement.
