Mitsubishi joins Honda and Nissan's extensive partnership

Mitsubishi Motors, which already has alliances with Honda and Nissan, will now join the broader alliance formed between Honda and Nissan in March.

The news was first reported by the Nikkei on Sunday and confirmed by the three automakers on Thursday.

In a joint statement, the automakers said they had signed a memorandum of understanding to jointly explore possibilities for cooperation, particularly in the areas of vehicle electrification and software development. It also stated that the addition of Mitsubishi to the partnership will provide additional synergies and business opportunities compared to a partnership consisting solely of Honda and Nissan.

According to an earlier Nikkei report, Mitsubishi's partnership with Honda and Nissan will leave two dominant automotive groups in Japan. One will be Toyota and its affiliated brands, and the other will be a coalition of Honda, Nissan, and Mitsubishi. These two groups combined sold over 19 million cars last year.

Nissan already owns a 34% stake in Mitsubishi, and the two companies share vehicle platforms and technology through their existing alliance, which also includes Renault. Mitsubishi has collaborated with Honda in the past, most recently in the area of EV battery leasing through a joint venture called Altona.

Japanese automakers are consolidating to cut costs, but are also trying to catch up in the EV race after years of promoting hydrogen fuel cells as an alternative. Toyota, Mazda, and Subaru also announced plans in May to cooperate on internal combustion engines.

These moves are aimed at fending off competition from international rivals, particularly China, which last year surpassed Japan as the world's largest auto exporter.

Separately, Honda and Nissan announced plans Thursday to jointly explore a platform for the next generation of software-defined vehicles, or SDVs, in which both software and hardware capabilities can be enhanced over time through software, usually through wireless updates. SDVs are vehicles in which the functionality of both software and hardware can be enhanced over time through software, usually through wireless updates.