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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 liable 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 just a few instances now; first in idea kind on the Beijing Present of 2024, then later that 12 months in production-intent kind by November. Just a few days in the past, the Chinese language Ministry of Business and Data Expertise (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, will probably be a single motor-only sedan producing both 214 horsepower or 268 horsepower. I imply, it’s nice sufficient, it doesn’t seem to be an enormous step in any path, and it possible can be a nice sedan to serve China’s model of Uber referred to as Didi.

There’s nothing essentially incorrect 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 authentic 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 below contract, however it is usually considerably concerned within the growth of the automobiles themselves, particularly within the EV period.

Usually, this wouldn’t be a problem. 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 growth and manufacturing. Most lately, it’s began producing the China-only Honda Ye sequence of automobiles. 



Honda Ye Series

It looks as if there are a variety of fashions and growth 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 needs to share prices and doubtlessly streamline growth prices between each lineups, nevertheless it appears to be like like they’ve an entire different model in China the place they’ve spent a number of cash creating, manufacturing and advertising competing lineups of automobiles that possible don’t have anything to do with one another. The place does Dongfeng fall below all these things?

Whereas at a Honda roundtable at this 12 months’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 corporations. In fact, we all know the scenario…however truly, the discussions are between [only] Honda and Nissan. Eventually, we must speak about it, however so there’s no conclusion over that,” stated Katsushi Inoue, Honda’s World Head of Electrification Enterprise Growth.

He stated 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 said earlier, Honda stated it needs to simplify growth and doubtlessly share EV prices with Nissan, however how will that work, precisely? Honda already has three joint ventures or shared corporations (Dongfeng, Sony and Normal Motors) that every one have EVs which can be unrelated to one another.

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

EV patrons throughout the globe will simply have to sit down again and watch what fashions make it, and which fall by the wayside.

Contact the creator: [email protected]

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