TOKYO – Honda Motor Co. CEO Toshihiro Mibe repeated the go-it-alone automaker’s message Friday that, when it comes to joining the race to electric vehicles, Honda is ready to rely on partners.
It is a sea change for the fiercely independent Japanese carmaker, and Mibe, who took the CEO job in April, wants to make sure the industry knows that Honda is now open for outside alliances.
“If through an alliance Honda can accomplish early what it should aim to be, then we’d be willing to form an alliance,” Mibe told a press briefing.
Honda and General Motors now plan to introduce two jointly developed large-sized EV models in 2024 in North America using GM’s Ultium batteries and Honda will launch a series of new models built on a dedicated platform called “e:Architecture.”
The two companies also are collaborating on autonomous vehicles and fuel-cell vehicle technology, and are exploring more ways to expand their alliance.
Mibe’s new message reflects the pressure on automakers to share technology and costs to meet demands for cleaner vehicles. He has assumed the top role at Japan’s second-largest automaker at a time of a growing shift in automobile technology to EVs and autonomous driving.
Honda has declared that by 2040, EVs and FCVs will constitute 100 percent of its global vehicle sales.
The price of EVs, like home appliances, drops rapidly once the products are out in the market, Mibe said.
“Building an alliance will become a huge direction in terms of increasing the number of electric vehicles, considering how electrification is not commercially feasible right now,” he added.
Traditionally known for its fuel-efficient internal-combustion engines, Honda launched its first mass-produced all-battery vehicle in August.
Honda could differentiate itself in the electrification race with next generation batteries for EVs, Mibe said.
The Honda chief also said that the automaker expects to see profitability of its car business improve in the next fiscal year as a result of shutting down several unviable manufacturing facilities, including certain factories in the United Kingdom, Turkey and Japan.
Last year, Honda saw operating income margin at 13 percent for motorcycles and 1 percent for cars.
The company will take electrification as an opportunity to review its product lineup and to improve profitability, Mibe said, adding that Honda is considering a new digital service or business by utilizing customer data.