Nissan & Honda & Mitsubishi Sign MOU, No Closure for VW in Germany, NIO Unveils its ET9 & the 1st Model of its Firefly Brand, Santa's coming tomorrow

?? Honda is taking over Nissan in a merger short on synergy

Is this the photo of a podium crowning the winner of the merger? It sure seems like it, as the three Japanase carmakers confirmed they are looking at the creation of a joint-holding uniting their three companies by 2026, with a deal expected for next June. While Mitsubishi Motors (mainly owned by Nissan) is still weighing its participation by the end of January, Honda and Nissan seem poised to create a new global powerhouse in the industry, even #3 worldwide by sales. But what for?

"There is practically no complementarity between the two companies" Carlos Ghosn

Carlos never holds back a ‘good’ word for his former employers. This time, he spares Renault and takes aim at Nissan, which he believes is in “panic mode” and whose synergies with Honda are far from obvious to him: “same markets, same products, the brands are very similar.” No doubt in his mind: “it’s a desperate move [from Nissan]”—one he primarily attributes to the influence of METI, Japan’s powerful Ministry of Economy, which he suspects is pushing for this alliance that the former CEO clearly views as unnatural.

Beyond Carlos Ghosn’s potential resentment, the facts remain: Nissan is undoubtedly struggling, and its breakup with Renault now appears more like a symptom of its problems than the cure some had hoped for. “This is not the rescue of Nissan,” declares Honda CEO Toshihiro Mibe. But perhaps it should be? After all, while cultural differences and political power struggles between France and Japan may have strained the Renault-Nissan alliance, Ghosn reminds us that the pride each company takes in its own engineering could also become a source of division—likely requiring a clear leader to emerge in this marriage of convenience. In the meanwhile, METI's influence means manufacturing synergies will definitely not be fully leveraged to avoid massive layoffs within Japan. The benefits of this partnership will then likely only materialize in the longer term, through medium- and long-term R&D synergies, as both brands continue to struggle to catch up in the electric and digital revolutions.

Good news, Honda already seems poised to take the lead, securing a majority on the board of the future entity, and has a few aces up its sleeve: its Honda Prologue has been a surprise hit in U.S. EV sales at the end of this year, and the company has some other interesting partners such as Sony, with whom it embraces digitalization through their joint venture, Afeela.

That said, both automakers still rely heavily on others: the Prologue is built on GM’s Ultium platform, while Nissan and Mitsubishi continue to rely on Renault’s platforms to survive in Europe. The potential merger does little to undermine these marriages of convenience though, as the entire industry faces the same imperatives of cost-sharing and survival. However, it does further highlight the fragility of these two Japanese manufacturers.

Mitsubishi’s decision, expected by the end of January, will already serve as the first indicator of how healthy the discussions are—and what the future may hold for this alliance. Time is running out, and the risk looms that tech giants hungry for a foothold in the automotive world, or even new players desperate for a badge attractive enough to boost exports, could swoop in to seize the opportunity.

Foxconn is already knocking: could this be the real marriage of reason?

?? This Week In The Mobility World

???Appointments (& resignations)

• Polestar has appointed Jonas Engstrom as Chief Operating Officer (COO). In his new role, Jonas will oversee the company’s growing car programs and daily operations, working closely with CEO Michael Lohscheller to implement the company’s strategy.

?? Factories/Manufacturing/Recalls

• The DOE just closed a $7.54B loan to StarPlus Energy , a JV between Stellantis and Samsung SDI , to build two battery plants in Kokomo, Indiana. This project aims to produce 67GWh of batteries annually, enough to power 670k vehicles, reducing reliance on foreign sources like China. Similarly, BlueOval SK, LLC , a Ford-SK On JV, received a $9.63B loan for three battery plants in Tennessee and Kentucky, creating thousands of jobs and boosting US EV battery production. Both projects align with the Biden-Harris Administration’s plan to strengthen domestic manufacturing and support communities.

• Generosity doesn't stop here as another condition loan has been approved to NOVONIX ($755M), an Australian company, to build North America's first large-scale synthetic graphite factory in Chattanooga, Tennessee. Expected to supply 325k EVs annually by 2028, the facility is part of efforts to reduce reliance on China, which dominates over 95% of the global graphite market.
• Volkswagen reached a deal with its union, IG Metall , ending a three-month standoff that highlighted Germany's industrial struggles. The agreement ensures that all 10 of Volkswagen’s factories in Germany will remain open until 2030, but over 35k jobs will be lost through retirement and attrition as part of a restructuring plan. In exchange, IG Metall withdrew its wage demands and agreed to production cuts, while a fund equivalent to a 5% wage increase over five years will be created to support workers affected by reduced hours or early retirement. The deal aims to save €4B annually and secure Volkswagen’s future amid declining demand and rising competition, providing a much-needed positive outcome in a challenging economic climate.
• HORSE has begun production of its in-house designed "DB49" transmission at its Seville plant. This 15-speed, clutchless unit, weighing just 99kg, is designed for plug-in hybrid vehicles like the Renault Rafale SUV.

• Stellantis has unveiled an ambitious plan for Italy, revealed during a strategic meeting in Rome with unions and Italian government officials, including Minister Adolfo Urso . Despite tense relations with the government under CEO Carlos Tavares, the plan outlines €2B in investments for Italian sites and €6B in purchases from local suppliers by 2025. Stellantis aims to maintain all its factories in Italy, introducing new models like the Fiat Panda, 500, and Alfa Romeo Stelvio, while creating job security through retraining initiatives. The plan also includes major upgrades at key plants, such as Mirafiori, Pomigliano, and Cassino, reinforcing Italy’s role in Stellantis’ production and innovation strategies. To top it all off, Stellantis confirmed later in the week that its European headquarters will be located at the Mirafiori industrial site in Turin.
• Talking about Stellantis , calm winds also blow across the US as the company reversed plans to lay off 1,100 Ohio Jeep workers, allowing them to return in January. The move follows CEO Carlos Tavares’ resignation amid internal disputes and ongoing cost-cutting efforts, which have strained relations with the UAW.
• LG Energy Solution (LGES) is in talks with JSW Energy to form a JV to produce batteries for EV and energy storage in India, with over $1.5B in investment. LGES will provide technology and equipment, while JSW will invest capital. The plant, expected to be operational by late 2026, will have a 10-gigawatt-hour capacity, with JSW using 70% for energy storage and EVs.
• Tesla ’s Cybertruck faces its seventh recall, this time for a glitch silencing tire pressure warnings, also affecting nearly 700k Model 3 and Model Y vehicles. A software update fixed the issue, with no accidents reported, but it’s another bump in the road for the Cybertruck, joining recalls for stuck pedals and laggy cameras.
• Apparently, "safety first" isn't always the priority. Tata Group, owner of Jaguar Land Rover, reportedly retaliated against engineer Hazar Denli after he raised concerns about life-threatening defects in VinFast electric cars, on which Tata Motors was in charge of the design. Despite his warnings, production continued, and after Denli posted about the issue on Reddit, he was fired by JLR. He’s now pursuing legal action, calling attention to the need for better whistleblower protections in the industry.
• EV startup Canoo furloughed 82 employees and halted Oklahoma factory operations while seeking emergency funding. This follows leadership exits, supplier lawsuits, prior layoffs, and the closure of its LA office. Despite delivering test vehicles to NASA, USPS, Walmart, and the DoD, Canoo has struggled to scale production. In an email obtained by TechCrunch , the company informed remaining employees of a “mandatory unpaid break” through year-end, locking them out of its systems but maintaining benefits until December 31. With only $700k in cash as of mid-November, Canoo faces mounting challenges to survive, even as it expresses hope to rehire furloughed staff and stabilize its operations.
• In a recent agreement with the UAW, Rivian has committed to adopting a neutral stance on unionization efforts at its Illinois factory, contingent on the company reaching profitability. The agreement could pave the way for unionizing efforts, although Rivian has yet to post a quarterly profit and remains far from meeting the conditions. This deal is significant for the UAW’s push to organize the EV industry, especially as Rivian seeks a $6.6B loan from the US Energy Department to fund a new EV plant in Georgia.
• Archer has completed its 37,161m2 (400k sq ft) eVTOL manufacturing facility in Georgia, with production of its Midnight aircraft set to begin in early 2025. Partnering with Stellantis , Archer aims to scale production to two aircraft per month by 2025 and eventually reach 650 annually by 2030.

???Tech

• Waymo will begin testing EV in Tokyo in early 2025! Partnering with Nihon Kotsu Co. Ltd. , Japan’s largest taxi operator, and taxi app GO, Waymo will map key areas of Tokyo using manually operated Jaguar I-PACE vehicles, while data collected will train its AI systems. Testing will also occur on a US-based closed course replicating Japanese driving conditions. Although commercial operations have not been confirmed, Waymo aims to integrate with Tokyo’s transportation ecosystem and address the needs of its aging population, as Japan continues to prioritize driverless technology development.

• Waymo is not just stepping up its game in Tokyo but also pushing its narrative about the positive impact of AVs for safety on the road. A new study, shared with Swiss Re, claims that Waymo’s fully autonomous vehicles are dramatically safer than human drivers, with an impressive 88% drop in property damage claims and 92% fewer bodily injury claims across 25.3M miles. The findings, based on real-world data from cities like Phoenix, San Francisco, and Los Angeles, show Waymo’s Driver outperforms both regular drivers and those in newer cars with ADAS. A claim not to be taken for granted considering the difficulty to compare both, but an encouraging study worth noting.

• Zeekr International has partnered with Intellias to strengthen its software engineering in Europe, opening an R&D hub in Krakow. This collaboration will accelerate Zeekr's goal to enhance the automotive experience through AI, voice control, and cloud-based infotainment. The Krakow center will work with Zeekr's Gothenburg team to drive software development and innovation.
• DHL Supply Chain has successfully piloted autonomous baggage transfers at Heathrow, completing 1,300km in two weeks using Oxa’s self-driving technology. The project aims to enhance efficiency, sustainability, and scalability in airport logistics, paving the way for future automated operations.

• NIO蔚来 and 萬事達卡 have formed a global partnership to offer exclusive services to Mastercard cardholders, including charging, battery swapping, and VIP travel perks. The collaboration aims to enhance the user experience with frictionless payments for services like parking and shopping.

• Renault has integrated Nextory into its openR link multimedia system, offering a wide selection of audiobooks, ebooks, and magazines in several European countries. This addition enhances the in-car entertainment experience, allowing drivers and passengers to enjoy content from Nextory during their journeys. New subscribers can access the service for a discounted rate of €6.99. And why Nextory? Perhaps because with Renault’s big partnership with Google, choosing Audible might have felt a bit too... mainstream.

?? EVs

• President Biden's administration has set an ambitious goal of reducing US greenhouse gas emissions by 61%-66% below 2005 levels by 2035, aligning with the Paris climate agreement. This target remains achievable despite proposals from Donald Trump's transition team to overhaul US EV policy. Trump's plan includes cutting support for charging stations, eliminating EV tax credits, and shifting funds to secure battery minerals and strengthen defense supply chains. The proposal also suggests imposing tariffs on global battery imports, rolling back emissions standards, and limiting California's ability to enforce stricter pollution rules, marking a shift away from Biden's focus on rapid electrification in favor of boosting domestic production and national security!
• European automakers are adjusting prices in response to the EU's stricter emissions rules, which take effect in January 2025. The EU will reduce its CO2 emissions cap, requiring at least 20% of sales to be electric to avoid fines. While some companies like BMW and Mercedes are on track, others, including Volkswagen, Stellantis, and Renault, risk penalties of up to €16.4B. To boost EV sales, automakers are raising prices on ICE models; for example, Peugeot and Renault increased ICE prices by €300-500. However, this strategy might backfire, as higher ICE prices could reduce overall sales...
• Who would’ve guessed? Fisker registered more EVs than Volkswagen in October, 110 vs. 92. Fisker, despite going bankrupt, had 3k unsold Ocean EVs that were sold off at deep discounts, boosting its numbers. Meanwhile, VW’s ID.4 production paused due to a recall, and the ID.Buzz just launched with limited availability. So, while not impressive, Fisker managed to edge out Volkswagen in this unlikely race...
• Lamborghini has postponed the launch of its first EV to 2029, delaying plans initially set for 2028 and inspired by the Lanzador EV concept. At a press event in Italy, Lamborghini President Stephan Winkelmann stated, “We do not think 2029 is late to have an electric car,” adding that the market in Lamborghini's segment likely won’t be ready before then. Looks like I'll need to keep my Aventador revving at the Monaco tunnel a bit longer!

• Lynk & Co ’s new 02 coupé SUV enters a crowded EV market, where its 272hp motor and 66kWh battery, promising a 445 km range, will face stiff competition. Unlike the brand’s previous subscription model, the 02 is available in two trims priced at €35,995 and €39,995, an aggressive strategy that undercuts many competitors, though its Chinese production means it’s ineligible for French eco-bonuses.
• The Apur association reports encouraging outcomes following the reduction of the maximum speed limit on the Paris's ring road (le "Périphérique"). Over a two-month period compared to the previous year, data shows a 20% decrease in accidents, a 20% reduction in traffic congestion, a 40% drop in nighttime road noise (not 4%, decibels are logarithmics folks!), and emission reductions ranging from 13% to 24%. Don’t be misled by cherry-picked analyses based on just one week!

???New Car Reveals

• Spotted on the road! What, you don't recognize her? Blame it on the pixelated video? It's the Jaguar prototype that caused such a stir... Under the camouflage, the prototype maintains the Type 00's signature fastback profile and generous dimensions.

• NIO蔚来 has officially launched its flagship ET9 sedan, its most expensive model yet, as it targets doubling deliveries in 2025 and achieving profitability by 2026. Priced from 788k yuan ($108k), or 660k yuan with a rented battery, the ET9 is aimed at competing with Porsche’s Panamera and Mercedes-Benz’s S-Class. With a range of 650km on a 100kWh battery and features like high-voltage charging, Nio’s in-house intelligent driving system, and luxury interiors, deliveries are set to begin in March.

• NIO蔚来 also introduced Firefly with its first model set to rival compact urban EVs like the Honda E (to which we can find a resemblance ??), BMW’s Mini, and Renault's R5. Priced from 148,800 yuan ($20k), or less than 100,000 yuan with a rented battery, the Firefly prioritizes affordability without compromising on features, offering nine airbags and leveraging Nio’s innovative technologies. Designed for global markets, Firefly is expected to launch in Europe by 2025, following an earlier showcase in Frankfurt. The model employs a separate battery-swapping system for flexibility and rapid deployment.

?? EV Infrastructure Updates

• Groupe Le Duff and Electra are making great progress in their partnership to equip Del Arte restaurant parking lots with fast-charging stations. After the successful opening of the first station in Brétigny-sur-Orge in November, the second Electra station is now live at the Del Arte restaurant in Beauvais. This is just the beginning, with more locations set to follow in the coming weeks.

• ChargePoint and 通用汽车 are collaborating to install up to 500 ultra-fast EV charging ports at strategic US locations by the end of 2025. These locations, branded GM Energy, will feature ChargePoint’s Omni Port system, allowing vehicles with CCS or NACS ports to use any charger. Many stations will offer charging speeds up to 500kW via ChargePoint’s Express Plus platform.

??? Bookmarks

Make, buy, protect Europe by william todts , executive director of T&E and Jos Dings

T&E argues that Europe must act decisively to reclaim its position in clean technology, leveraging its vast single market and legal tools to compete with the US and China. Despite significant subsidies, foreign investments in European cleantech, such as CATL and Gotion, have yielded limited local benefits. T&E proposes a three-pronged strategy: reforming state aid to prioritize local supply chains and production, implementing a ‘Buy Europe’ initiative to drive demand for EU-made products, and using trade measures to incentivize localization of critical industries.

To delve deeper into their vision, check out their opinion.

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