The Automotive Industry at a Crossroads: Nissan, Honda, and Mitsubishi’s Bold Move

The automotive industry is moving at lightning speed, much like when Apple revolutionized the smartphone or Netflix reshaped how we consume entertainment. Electrification, advanced technology, and efficiency aren’t just trends they’re redefining the way vehicles are made, sold, and driven. Recently, Nissan, Honda, and then Mitsubishi announced they’re exploring a collaboration to adapt to this rapidly evolving landscape.

I have had the pleasure of working with and supplying accessories to 日产 and Mitsubishi Motors Australia and Mitsubishi Motors Australia over the years with my company HSP 4x4 so When I heard this news, I couldn’t help but reflect on what it means. These are three of Japan’s most iconic automotive brands companies that have created some of the world’s best cars. This could be an opportunity for them to come together and show the world what they’re still capable of or it could signal years of restructuring at the expense of staying competitive.

Why This Makes Sense

Nissan, Honda, and Mitsubishi have all earned their place in automotive history. They’ve built vehicles that pushed the boundaries of performance, reliability, and functionality.

This collaboration allows these brands to pool their strengths, focus their resources, and get back to what they do best: building innovative, high-quality cars.

By working together, they can be smarter about where to compete, focusing on the markets and segments where they can truly make an impact.

There’s also huge potential for cost savings or reinvestment into breakthroughs in areas like synthetic fuels, where Japan is already a leader through companies like ENEOS. This could disrupt not only the EV market but the entire conversation around sustainable driving. At the same time, it could cause significant headaches for Chinese automakers, who have focused heavily on EVs and PHEVs.

The Honda Factor: An Independent Spirit

Still, I can’t ignore the challenges—especially for Honda. Unlike Nissan and Mitsubishi, Honda has always been fiercely independent. They’ve charted their own course for decades, so the idea of teaming up might feel a bit unnatural and could clash with their culture.

Even in Australia, Honda was one of the first to adopt an ‘agency’ model, cutting ties with a traditional dealerships model to maintain full control over their sales process. Honda’s autonomy has always been its strength, and I imagine there might be resistance to giving that up, even if it’s in the name of progress.

This independence is also why Honda’s EV journey has been rocky. First, they planned to work with GM, then backed out, then partnered with Sony, and finally decided to go it alone. This indecision has cost them valuable time in an industry where speed is everything. Maybe hindsight will show that collaboration is what Honda needs to finally nail their EV strategy.

Meanwhile, Nissan has been ahead of the curve, leading the charge with the Nissan Leaf—one of the first affordable EVs to make a global impact.

Why Is This All Happening?

Of course, Nissan’s financial status plays a role, but that’s just scratching the surface. The real driver here is the elephant in the room: Chinese automakers, which is also affecting the bottom line of Honda and Mitsubishi.

Brands like BYD, Chery, LDV, and Haval aren’t selling cheap cars they’re delivering genuinely great vehicles that just happen to have a cheap price tag.

I’ve seen, driven, and worked with Chinese automakers like GWM Australia & New Zealand and LDV Automotive Australia , and it’s astonishing how quickly they’re evolving. Recently, I had the pleasure of seeing models like the BYD Shark and LDV Terron, and they’re beyond impressive. Packed with features, stunning designs, and incredible value for money, they’re setting a new benchmark.

This is why I believe no collaboration even between titans like Nissan, Honda, and Mitsubishi—will stop the Chinese wave. But what it can do is put them in a position to create their own waves and level the play field.

Challenges Ahead

That said, this collaboration has plenty of hurdles to overcome:

• Bureaucracy: Getting three massive organizations to work efficiently together is no small task. Clear structures and communication will be critical.
• Timing: Chinese automakers are growing fast. Is this collaboration too late to regain footing, or can it help these brands catch up?
• Cost vs. Quality: Competing with lower-priced vehicles often means cutting costs, but how do they do that without compromising the quality that defines Japanese cars?

Why I’m Hopeful

Despite the challenges, I’m optimistic. Nissan, Honda, and Mitsubishi have shown time and again that they’re capable of greatness. This collaboration offers a real opportunity to combine their strengths, streamline their efforts, and remind the world why they’re leaders in the industry.

Meanwhile, Chinese automakers like Chery, BYD, and LDV will undoubtedly continue disrupting the market and rewriting the rules. If competition leads to even lower pricing from these brands, it will be fascinating to see how they redefine their unique selling points to stay ahead.

Whatever happens, this collaboration feels like a pivotal moment not just for these brands but for the automotive industry as a whole. My hope is that this competition pushes innovation further, leading to better technology, safer and more efficient cars, and greater affordability for everyone.

What do you think? Could this collaboration really deliver, or is it too late to turn the tide? I’d love to hear your thoughts.

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