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Honda-Nissan-Mitsubishi alliance completes Japan car industry consolidation

Makoto Uchida (left), president and CEO of Nissan, and Toshihiro Mibe, director, president and representative executive officer of Honda, at a press conference in Tokyo on Thursday. (Getty)   Japan’s carmakers are putting the finishing touches on a combine-and-compete strategy for an automotive age defined by batteries and software, with three manufacturers joining forces to complement a separate Toyota Motor Corp.-led coalition. Honda Motor Co. and Nissan Motor Co. agreed this week to build upon a preliminary deal first reached in March, offering more details of how they plan to work together and also adding Mitsubishi Motors Corp. to the mix. While the companies havenÂ’t yet discussed a capital alliance, forming one is a possibility, Honda Chief Executive Officer Toshihiro Mibe said. The partnership will span joint work on software development, batteries and other electric-vehicle components, as well as EV charging and energy services, the three companies said. Their cozying up to one another follows Toyota acquiring stakes in Subaru Corp., Suzuki Motor Corp. and Mazda Motor Corp., and helping them navigate a fraught era for legacy car companies. Whereas Toyota has tied up with its domestic peers from a position of strength — itÂ’s been the worldÂ’s best-selling automaker for four years running — Honda, Nissan and Mitsubishi each are much smaller players on the global stage. Their coming together is seen as a move by JapanÂ’s government to fortify its auto industry in the wake of China having emerged as the worldÂ’s new No. 1 car exporter. “This is coordinated by the government to build a competitive automaking industry,” said James Hong, analyst at Macquarie Securities Korea Ltd., adding that most automakers in Japan are too small to be able to invest in EVs individually. “It feels like a politically driven alliance.” While the US has had the Big Three — General Motors Co., Ford Motor Co. and Chrysler, now owned by Stellantis NV — and Germany similarly has a trio in Volkswagen Group, BMW AG and Mercedes-Benz, Japan has a much bigger crop of carmakers manufacturing vehicles across the globe. Honda, Nissan and Mitsubishi combined sold about 4 million vehicles globally in the first six months of the year, well shy of the 5.2 million that Toyota sold on its own. While the three touted the potential for generating synergies from working together, executives also acknowledged theyÂ’ll have to overcome contrasts with their compatriots.

US expands probe into ZF-TRW airbag failure-to-deploy to 12.3 million vehicles

DETROIT — U.S. auto safety regulators have expanded an investigation into malfunctioning airbag controls to include 12.3 million vehicles because the bags may not inflate in a crash. The problem could be responsible for as many as eight deaths. Vehicles made by Toyota, Honda, Kia, Hyundai, Mitsubishi and Fiat Chrysler from the 2010 through 2019 model years are included in the probe, which was revealed Tuesday in documents posted by the National Highway Traffic Safety Administration. It involves airbag control units made by ZF-TRW that were installed in the vehicles. The control units can fail in a crash, possibly because of unwanted electrical signals produced by the crash itself that can disable an air bag control circuit housed in the passenger compartment, according to NHTSA documents. The electrical signals can damage the control circuit, the documents say. ZF, a German auto parts maker which acquired TRW Automotive in 2015, said in a statement that it's committed to safety and is cooperating with NHTSA and automakers in the investigation. The case is another in a long list of problems with auto industry airbags, including faulty and potentially deadly Takata airbag inflators. At least 24 people have been killed worldwide and more than 200 injured by the inflators, which can explode with too much force and hurl dangerous shrapnel into the passenger cabin. The inflators touched off the largest series of automotive recalls in U.S. history involving with as many as 70 million inflators to be recalled by the end of next year. About 100 million inflators are to be recalled worldwide. On April 19, NHTSA upgraded the ZF-TRW probe from a preliminary evaluation to an engineering analysis, which is a step closer toward seeking recalls. So far, only Hyundai and Kia and Fiat Chrysler have issued recalls in the case. Four deaths that may have been caused by the problem were reported in Hyundai-Kia vehicles and three in Fiat Chrysler automobiles. NHTSA opened an investigation in March of 2017 involving the TRW parts in Hyundais and Kias. The upgrade came after investigators found two recent serious crashes involving 2018 and 2019 Toyota Corollas in which the airbags did not inflate. One person was killed. Jason Levine, executive director of the Center for Auto Safety, a nonprofit consumer group, said the ZF-TRW case shows the auto industry thus far has learned very little from Takata.

Nissan didn't have much say in merger talks, but it had what FCA wanted

TOKYO — Nissan wasn't consulted on the proposed merger between its alliance partner Renault and Fiat Chrysler, but the Japanese automaker's reluctance to go along may have helped bring about the surprise collapse of the talks. While Nissan Motor Co. had a weaker bargaining position from the start, with its financial performance crumbling after the arrest last year of its star executive Carlos Ghosn, it still had as its crown jewel the technology of electric vehicles and hybrids that Fiat Chrysler wanted. The board of Renault, meeting Thursday, didn't get as far as voting on the proposal, announced last week, which would have created the world's third biggest automaker, trailing only Volkswagen AG of Germany and Japan's Toyota Motor Corp. When the French government, Renault's top shareholder with a 15% stake, asked for more time to convince Nissan, Fiat Chrysler Chairman John Elkann abruptly withdrew the offer. Although analysts say reviving the talks isn't out of the question, they say trust among the players appears to have been broken. "The other companies made the mistake of underestimating Nissan's determination to say, 'No,' " said Katsuya Takeuchi, senior analyst at Mitsubishi UFJ Morgan Stanley Securities in Tokyo. The Note, an electric car with a small gas engine to charge its battery, was Japan's No. 1 selling car, the first time in 50 years that a Nissan beat Toyota and Honda. Renault and Fiat Chrysler highlighted possible synergies that come from sharing parts and research costs as the benefits of the merger. But what Fiat Chrysler lacks and really wanted was what's called in the industry "electrification technology," Takeuchi said. With emissions regulations getting stricter around the world, having such technology is crucial. Yokohama-based Nissan makes the world's best-selling electric car Leaf. Its Note, an electric car equipped with a small gas engine to charge its battery, was Japan's No. 1 selling car for the fiscal year through March, the first time in 50 years that a Nissan model beat Toyota and Honda Motor Co. for that title. Nissan is also a leader in autonomous-driving technology, another area all the automakers are trying to innovate. "Although Nissan had no say, its cautionary stance on the merger ended up being very meaningful," Takeuchi said.