TIOT Iss.4 - Honda needs to purchase Nissan ASAP.
Source: Honda
I started off this morning with a wonderful article from Caleb Miller that validated my initial feelings about how bad Honda's decision was to cancel their entire EV range. I encourage you to read the full article, but the title alone is a good summary. "Honda Delays Five Next-Generation Models Until the 2030s," which seems to have been caused by Honda's overcommitment to its 0-series vehicles and their hasty retreat from that endeavor.
When they initially announced the cancellation of their EV development earlier this year, they claimed it was due to shifting demand in the EV market, tariffs, and their inability to compete with the Chinese competition. Which didn't make sense to me at the time since Hyundai is under all the same pressures yet they are able to deliver a great product to consumers and still turn a profit. Now in hindsight, it makes even less sense with the uncertainty of the war in Iran and gas prices surging. EV demand has only surged, and Honda is left without an EV and an aging fleet on top of that.
Which is why now would be the perfect time to get back on the phone with Nissan and make a deal that will be beneficial for both companies.
Whether you like EVs or not, money drives everything, and right now consumers cannot ignore how much it costs to fuel up your car. Honda needs an EV in their showrooms to bring in buyers; even if they leave with a hybrid, people need to have a perception of Honda providing you with savings. This is exactly why Honda partnered with GM in the first place to rebadge some of their vehicles into their own. However, after pulling the plug on that project earlier to try and build their own EVs (we see how that now turned out), I doubt any other car brand would be open to making a similar deal again in the future. Which is why Honda needs Nissan, who already has multiple EVs in their lineup and, more importantly, the factories that can build them. Even though Nissan is in a better spot now than they were when they first asked Honda for a buyout, they still are on the edge and are more willing than any other car company to work with Honda for an infusion of cash. Then Honda can use their ownership of Nissan to focus solely on the vehicles they want to make, like purely gas burning vehicles or hybrids, and leave the rest of the boring work up to the Nissan engineers.
What do y'all think? Would you buy a Nissan with a Honda badge on it? Do you think EVs can hurt Honda's brand image? I can't wait to hear what y'all think and catch you next Tuesday.
