Honda and Nissan confirm EV merger to survive the every ‘100 years’ industry shake-up
Honda and Nissan will team up to build EVs as they look to keep pace with Tesla and BYD. The Honda and Nissan EV merger will create one of the world’s largest auto groups as they look to pull a third Japanese automaker into the partnership. Here’s everything you need to know.
How the Honda and Nissan EV merger will work
It’s official. Honda and Nissan signed a memorandum of understanding (MOU) on Monday, laying the groundwork for a joint EV holding company. Executives from both companies confirmed the news.
We knew the EV merger was coming soon after a Nikkei report last week claimed Honda and Nissan were closing in on a deal. With around 8 million combined sales, the landmark partnership will create the third-largest auto group globally, behind Volkswagen and Toyota.
In August, Honda and Nissan extended the collaboration to include Mitsubishi. Nissan, which owns a 24% stake in Mitsubishi, said including its partner is “significant” and will enable them to deliver even greater value.
Honda’s CEO, Toshihiro Mibe, explained, “At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors”’ participation in the business integration discussions of Nissan and Honda will lead to further social change.”
A rapidly changing auto industry
After kicking off discussions on Monday, Honda and Nissan said they plan to provide more details on Mitsubishi’s involvement around the end of January 2025. The EV merger is expected to be official by August 2026.
The deal comes after “the business environment for both companies, the wider automotive industry, has rapidly changed.” During a press conference (via Reuters), Mibe said, “The rise of Chinese automakers and new players has changed the car industry quite a lot.” Honda’s chief added:
We have to build up capabilities to fight with them by 2030, otherwise we’ll be beaten.
Like most legacy automakers, Honda and Nissan are struggling to keep pace with Tesla and Chinese EV leaders like BYD.
BYD continues taking the auto market by storm. After another record sales month in November, its second straight with over 500,000 vehicles sold, BYD is causing legacy automakers, like Honda and Nissan, to make drastic moves.
Under the EV merger, Honda will nominate a majority of the board. The new partnership is still subject to shareholder approval from both companies. Due to Nissan’s recently announced turnaround plan, it’s also contingent on obtaining approval from authorities.
Nissan announced its plans to cut around 9,000 jobs last month while reducing global production capacity by 20% after sales fell by 15% in the US and China in October.
Electrek’s Take
While BYD’s sales surge continues heating up, Japanese automakers have been some of the hardest hit. China is a key market for Japanese automakers, but it has become a battleground over the past few years.
In 2020, Japanese cars accounted for around 25% of vehicle sales in China. However, over the past four years, Japan’s auto giants have lost significant market share, more than any other region. And it’s not only in China. They are also quickly losing ground in Thailand, Singapore, and other critical global markets as Chinese EV leaders like BYD continue gaining ground.
Can Honda, Nissan, and Mitsubishi pool resources to turn things around and fend off the incoming wave of EV competition?
We will find out over the next few years as legacy automakers that were slow to transition to EVs continue scrambling to keep pace.
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The State of California is moving to ban the sale of Tesla cars amid claims that the company and its CEO, Elon Musk, have misled buyers about the self-driving capabilities of their cars. We’ve also got market-leading news out of Vietnam and a pricey, pricey lesson for one VW ID.Buzz buyer on today’s lesson-learning episode of Quick Charge!
We also ask what this might mean for the recent Uber/Lucid autonomous taxi tie-up and go through a full rundown of the fastest depreciating EVs on the market (and yes, there are four Tesla models in the top 10 … because the Cybertruck was too new to qualify).
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Sunrun is putting tens of thousands of home batteries to work in Puerto Rico as the island’s electric grid faces a summer of high temperatures and energy shortfalls.
The company says it’s now dispatching energy from over 37,000 residential batteries to help grid operator LUMA keep the lights on. That stored power is being used to prevent rolling blackouts when demand spikes and centralized power plants can’t keep up.
Sunrun’s emergency power contribution has grown more than tenfold since last summer. LUMA expects more than 75 energy shortfall events between now and October, with each dispatch sending electricity to the grid for four consecutive hours. During several recent evenings, Sunrun and other virtual power plant (VPP) operators provided enough energy to offset a 50-megawatt generation gap, LUMA said.
Sunrun CEO Mary Powell said Puerto Rico’s aging infrastructure and intense weather patterns make home battery support increasingly critical:
It’s going to be a very difficult summer, which is why Sunrun has ramped up our dispatch capabilities, using tens of thousands of home batteries to support the grid and people of Puerto Rico.
She added that distributed power plants like Sunrun’s serve the same role as natural gas peaker plants – offering fast, reliable power during high-demand moments – but with clean energy.
Sunrun customers enrolled in the VPP will get paid too. Each participating battery earns about $200 minimum for the season, and customers who allow more of their stored energy to go to the grid earn even more. Sunrun also earns revenue for operating the VPP.
Read more: The US’s largest virtual power plant now runs on 75,000 home batteries
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Volkswagen is advertising ID.4 leases starting at just $99 a month. It’s hard to find any car lease these days for under $100 a month, but for $45,000 electric SUV, it’s almost unheard of.
Volkswagen offers ID.4 leases as low as $99 a month
The Volkswagen ID.4 was the third top-selling EV in the US in January after the 2025 model year went back on sale.
Volkswagen’s electric SUV starts at $45,095 with an EPA-estimated driving range of 291 miles. It’s available in five different trims: Pro, AWD Pro, Pro S, AWD Pro S, and AWD Pro S Plus.
The base 2025 VW ID.4 Pro RWD is equipped with 282 hp from a single rear electric motor. Inside, it features a 12.9″ infotainment system with Android Auto and Apple CarPlay support, heated front seats, dual-zone climate control, and Volkswagen’s new ID.Cockpit digital instrument display.
Upgrading to the AWD version will gain a tow hitch and an additional 53 hp, for a combined maximum of 335 hp. The added power comes at the cost of some range, with an EPA-estimated range of 263 miles.
Volkswagen was already offering 2025 ID.4 leases as low as $129 a month, but some dealers are listing it for even less this month.
A California dealership, Volkswagen of Garden Grove, has the 2025 ID.4 Pro RWD listed for lease at just $99 per month. The offer is for 24 months with $2,995 down. According to the dealer, the offer includes a $5,000 cash back bonus, good on a new ID.4 purchase or lease.
We thought the 2025 Hyundai IONIQ 5 was a good deal with leases starting at just $179 per month, but for $99, now that’s a steal.
Looking for deals on the Volkswagen ID.4 near you? You can use our link to find and view offers on the 2025 Volkswagen ID.4 in your area (via a trusted affiliate link)
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