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Thursday, January 23, 2025

This Chinese language Firm Throws A Wrench Into The Nissan-Honda Merger


  • Nissan and Honda each have separate relationships with Dongfeng Motor, a Chinese language firm accountable for producing some Honda and Nissan merchandise in China. 
  • The Nissan N7 is the manufacturing model of the primary of the 4 EV and PHEV ideas it unveiled in collaboration with Dongfeng Motor on the 2024 Beijing Auto Present.
  • The Honda Ye sequence automobiles are additionally made by Dongfeng. (Dongfeng Honda)

That is the Nissan N7. We’ve seen it earlier than a couple of occasions now; first in idea type on the Beijing Present of 2024, then later that yr in production-intent type by November. Just a few days in the past, the Chinese language Ministry of Business and Info Know-how (MIIT) uncovered the ultimate manufacturing mannequin within the final step wanted for homologation on Chinese language roads.

The MIIT did expose some energy and dimensional particulars, it is going to be a single motor-only sedan producing both 214 horsepower or 268 horsepower. I imply, it’s high quality sufficient, it doesn’t seem to be an enormous step in any route, and it possible will likely be a high quality sedan to serve China’s model of Uber referred to as Didi.

There’s nothing essentially fallacious with the N7, nevertheless it’s clearly not a really thrilling sedan. Furthermore, I can’t assist however assume that this automobile received’t be lengthy for this world due to the Nissan-Honda merger. See, the N7 is developed partially by Dongfeng Motor, one in all Nissan’s unique companions from China’s 50/50 three way partnership scheme to get automakers to put money into China and assist its automobile business mature.

Dongfeng not solely builds Nissan fashions beneath contract, however additionally it is considerably concerned within the improvement of the automobiles themselves, particularly within the EV period.

Usually, this wouldn’t be a difficulty. However one in all Honda’s two three way partnership companions is additionally Dongfeng Motor. Like Nissan, Dongfeng is a part of Honda’s EV improvement and manufacturing. Most not too long ago, it’s began producing the China-only Honda Ye sequence of automobiles. 



Honda Ye Series

It looks like there are numerous fashions and improvement chains to untangle right here. Not solely are each manufacturers intertwined with Dongfeng, nevertheless it’s not clear what merchandise would be the winner on the finish of the day. Honda has been adamant that it desires to share prices and doubtlessly streamline improvement prices between each lineups, nevertheless it appears like they’ve a complete different model in China the place they’ve spent numerous cash growing, manufacturing and advertising and marketing competing lineups of automobiles that possible don’t have anything to do with one another. The place does Dongfeng fall beneath all these items?

Whereas at a Honda roundtable at this yr’s CES, I requested what would come of the relationships each Honda and Nissan have with Dongfeng. 

“Dongfeng Nissan and Dongfeng Honda are two completely different firms. In fact, we all know the state of affairs…however really, the discussions are between [only] Honda and Nissan. In the end, we must speak about it, however so there’s no conclusion over that,” mentioned Katsushi Inoue, Honda’s International Head of Electrification Enterprise Improvement.

He mentioned that quickly, Honda may make a shared announcement about the way forward for the tie-ups, however as of that second they’d nothing so as to add. 



Dongfeng Nano Box

From so many views, this mesh-up between Nissan and Honda feels so messy. As acknowledged earlier, Honda mentioned it desires to simplify improvement and doubtlessly share EV prices with Nissan, however how will that work, precisely? Honda already has three joint ventures or shared firms (Dongfeng, Sony and Common Motors) that each one have EVs which are unrelated to one another.

Dongfeng itself has a finances line of automobiles referred to as Venucia – lots of Venucia automobiles use components from the Nissan-Renault-Mitsubishi components bin. How on earth will Nissan fall in line? On the finish of the day, which merchandise will stay, and which received’t? 

EV consumers throughout the globe will simply have to take a seat again and watch what fashions make it, and which fall by the wayside.

Contact the writer: [email protected]

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