It’s official. Nissan and Honda are forming a new EV partnership after falling behind leaders like Tesla and China’s BYD. Will working together help turn things around?
Nissan and Honda form EV partnership to keep pace
Yesterday, Electrek reported that Nissan and Honda were considering partnering up to introduce more affordable EVs.
Sources at Nissan told Nikkei the automaker was looking to team up with Honda to discuss joint battery and EV development. Nissan and Honda made the partnership official Friday, signing a memorandum of understanding (MOU) to advance EV and software development.
The Japanese automakers will explore new software platforms, EV components, and other related tech.
Nissan’s CEO, Makoto Uchida, said it’s “important to prepare for the increasing pace of transformation in mobility in the mid-to-long term.” Uchida explained that the partnership with Honda is “significant” given that the two “face common challenges.”
Toshihiro Mibe, Honda’s CEO, said the company will see if combining tech and knowledge “will enable us to become industry leaders by creating new value.”
Nissan Ariya (Source: Nissan)
With Nissan looking to move to a common EV powertrain, the automakers could partner up on purchasing. They may also collaborate on a new shared EV platform.
The new partnership comes as both automakers (and the Japanese auto industry) quickly fell behind EV leaders like Tesla and BYD. According to sources, the aim is to bring down EV prices to compete with low-cost leaders from China.
2024 Honda Prologue (Source: Honda)
After dominating its home market, BYD is expanding overseas. Earlier this year, BYD declared a “liberation battle” against gas-powered cars, slashing EV prices under $10,000 (69,800 yuan).
According to the automaker, the low prices are “directly destroying the moat of joint venture vehicles.”
2024 Nissan LEAF (Source: Nissan)
That includes Nissan and Honda. A separate Nikkei report claimed they were drastically cutting production in China after struggling to keep up. The move comes as Japanese automakers are losing market share in the region, which accounts for 10% to 20% of their net profit.
Electrke’s Take
After losing market share in key regions to EV leaders like Tesla and BYD, Japanese automakers are feeling the pressure.
After launching EVs in Japan just last year, BYD already accounted for 20% of the nation’s electric car imports in January. With EV sales surging, China topped Japan to become the leading auto export nation for the first time last year.
It will be interesting to see what Nissan and Honda can come up with. After trailblazing the EV market with the release of the LEAF in 2010, Nissan has fallen behind. It took over a decade for its second mass-market EV, the Ariya, to begin rolling out.
After a rough start, Ariya production is finally on track. Nissan is now preparing to launch its next-gen EVs, including a LEAF successor and electric Juke and Qashqai (Rogue Sport in the US) replacements.
Meanwhile, Honda’s first electric SUV, the Prologue, is arriving at US dealerships this month. Based on GM’s Ultium platform, the Prologue offers up to 296 miles range.
Nissan is also reportedly in talks with Fisker about investing in the struggling EV startup. The partnership could include an electric pickup.
After partnering with Honda, will Nissan also invest in Fisker? Fisker has already expressed “substantial doubt” that it can continue operations. To make matters worse, the WSJ reported Fisker had hired a consulting firm for a potential bankruptcy filing.
Fisker responded by saying it does not comment on market rumors, but the company “often works with outside advisors to help manage its business.” The EV startup reiterated it was looking to form “a strategic partnership with a large automaker.”
Could it still be Nissan? Let us know what you think in the comments below. We will likely find out soon, so check back for more info.
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The German city of Karlsruhe is setting an example for sustainability in waste management by deploying a fleet of 18 Mercedes-Benz eEconic electric garbage trucks that are helping make the streets cleaner, quieter, and a lot less stinky.
Since the end of September, the city of Karlsruhe has been relying on Mercedes’ fully electric waste collection vehicles throughout, with none of the area-specific restrictions or limited rollout strategies for one or two trucks at a time that typically accompany stories like these. Instead, the city is using the Mercedes eEconics for the same stuff they’d use the diesel versions for: residual waste disposal, paper collection, and bulky waste collection.
Normal garbage duty, in other words. And, in such daily use, they do a great job. The trucks cover an average route distance of around 80 km (about 50 miles) on 112 kWh battery packs (usable capacity is ~97 kWh) which can be reliably completed in single-shift operation without intermediate charging — thanks, in part, to Mercedes’ efficient electric motors and regenerative braking that shines in the trucks’ typical stop-and-go duty cycles.
More than a single shift, in fact. The fleet managers report that after “a good 80 kilometers with around 60 stops on its daily route,” energy consumption was only around 35% of the battery capacity, meaning the charge level dropped from 100% to 65% and 64% respectively.
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At the same time, CO₂ emissions are significantly reduced: depending on the area of application, each eEconic can save between 150 and 170 tons of CO₂ per year. This results in a total potential annual saving of around 1,200 tons of CO₂ emissions.
The purchase of the electric vehicles was funded by the Federal Ministry of Transport (BMV) as part of the guideline on the promotion of light and heavy commercial vehicles with alternative, climate-friendly drives and the associated refueling and charging infrastructure (KsNI). The funding guideline was coordinated by NOW GmbH, and applications were approved by the Federal Office for Logistics and Mobility.
Electrek’s Take
Look, you know me. There is absolutely ZERO chance that I’ll be able to remain objective about anything that’s putting down more than four thousand lb-ft of torque. Make that thing quieter, cleaner, and generally better for me and my community, and there’s even less of a chance of me saying anything critical about it.
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Electreon just took a big step toward expanding wireless EV charging. The Israel-based company signed a memorandum of understanding (MoU) to acquire the assets of InductEV, a Pennsylvania-based firm known for its ultra-fast, high-power static wireless charging systems used by heavy-duty electric transit and freight fleets.
If the deal closes after due diligence and regulatory approvals, the combined company would bring together Electreon’s dynamic wireless charging tech – the kind that can charge vehicles while they drive – with InductEV’s high-power stationary systems. That would create one of the most complete wireless charging portfolios on the market, covering everything from passenger EVs to vans, buses, heavy-duty trucks, and even autonomous vehicles.
Electreon and InductEV together hold around 400 granted and pending patents, and have a lot of field experience across their respective projects. Electreon says that pairing its manufacturing capabilities and global footprint with InductEV’s ultra-fast tech will help streamline and speed up fleet electrification.
Both companies already work with major vehicle OEMs, which Electreon asserts will make integrating wireless charging into future vehicle platforms easier.
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Electreon CEO Oren Ezer said the deal would combine the two companies into “a truly global powerhouse for wireless EV charging.” He added that “the decision by InductEV’s shareholders to invest in Electreon is a tremendous vote of confidence in our shared vision.”
InductEV CEO John F. Rizzo said, “Together, we’re combining world-class innovation with real-world experience to deliver even greater value to our North American and European customers and accelerate the shift to wireless power for sustainable commercial transportation.”
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The Dolphin Surf is already one of Europe’s cheapest EVs, yet BYD may have an even more affordable electric car up its sleeve.
Is BYD launching the Racco mini EV in Europe?
BYD revealed the Racco at last month’s Japan Auto Show, its first EV designed exclusively for overseas markets.
The mini EV, or “kei car,” is launching in Japan, where over 1.55 million of them were sold last year, accounting for about a third of new vehicles sold.
Although Japan has been a brutal market for foreign brands to crack, BYD believes it may have an edge. The Racco measures 3,395 mm in length, 1,475 mm in width, and 1,800 mm in height, or about 600 mm longer than the Dolphin Surf.
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That’s about the size of the Nissan Sakura EV, Japan’s best-selling electric car. Like the Sakura and most kei cars, the Racco has a boxy, upright stance. It has four doors, with the back two sliding open.
BYD Racco EV (Source: BYD)
Powered by a 20 kWh battery pack, the mini EV is expected to have a driving range of around 180 km (112 miles).
BYD is using its Blade lithium iron phosphate (LFP) battery packs to keep costs down. Although prices have yet to be revealed, the Racco is expected to start at around 2.5 million yen ($18,000) in Japan, putting it on par with the Nissan Sakura.
The BYD Racco EV debuts at the Japan Mobility Show (Source: BYD)
If it launched in Europe, the Racco could go on sale for under £15,000 ($20,000), putting it on par with the Dacia Spring (£14,995) and Leapmotor T03 (£15,995). The BYD Dolphin Surf currently starts at £18,650 ($24,300).
Although it will arrive in Japan first, BYD may launch its smallest, cheapest EV in Europe after all. BYD’s vice president Stella Li suggested to Autocar that the Racco could play a key role globally as an affordable, entry-level EV.
The BYD Dolphin Surf EV (Source: BYD)
“In Japan, we are already launching a kei car; we will be very interested to follow the EU regulation,” Li said, adding, “If there’s some space, we can bring that car here.”
The regulation Li is referring to is the new “E-car” segment that the European Commission president, Ursula Von der Leyen, called for in September.
Von der Leyen said that Europe “should have its own E-car,” where “E” stands for efficient, economical, and European, and added “we cannot let China and others conquer this market.”
The Racco could sit underneath the Dolphin Surf in BYD’s growing European lineup. However, the company is focusing on expanding hybrid options. Li said launching Racco was “not a topic” the company is immediately focused on.
The Seal U, Europe’s best-selling plug-in hybrid through September, will be the first vehicle built at BYD’s new factory in Turkey, as it seeks to gain an edge through local production.
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