Now that the auto industry is turning to electric cars, Honda looking for help. And he is happy to receive this help from rival automakers. The Japanese automotive giant would have will not refuse competitors looking for new “strategic alliances”, according to a report by Bloomberg.
Honda CEO Toshihiro Mibe said in a interview that he thinks automakers working together would benefit the industry, and he explained that the Japanese automaker is having a bit of a hard time developing its EV software:
“It will be extremely risky for Honda to push the movement on its own,” CEO Toshihiro Mibe said in an interview on Tuesday. “It is important to form alliances, to mass produce and to reduce costs to make our business sustainable. “
“Even though we make electric cars, it will be extremely difficult for Honda to develop software on its own,” said Mibe, who helped lead the company’s R&D efforts before becoming CEO in April. “Honda will not hesitate to forge alliances with companies that are strong in their field if it quickly creates value.
The partnerships Honda says it seeks are not at all rare. This is already happening across the industry. In the report, Bloomberg cited a few examples, in addition to the one already in progress between Honda and GM:
- Volkswagen and Ford
- PSA Group and Fiat Chrysler
- Renault, Nissan and Mitsubishi
Honda also benefits from similar partnerships in adjacent markets, such as with its electric motorcycles. Recall that he joined a vsonsortium to standardize the exchangeable batteries in electric two-wheelers recently. A similar consortium for electric passenger cars would be great, covering both software and hardware.
Mibe has deviated around the idea that automakers should establish standards for electric vehicles and apply them together, but given how useful it would be for drivers and industry, maybe it shouldn’t have.