Toyota and Nissan are teaming up marking a milestone in the automotive industry! They are two important companies from Japan known around the world and this possible strategic alliance will bring innovation to the manufacturing of vehicles. Nowadays electric cars, digitalization and sustainability are what companies are searching for, but what are Toyota and Nissan incorporating?
This wouldn’t just mean an impact on the Japanese automotive industry, but also on the global market. Maybe China, the United States and Europe will have another rival in the competition. So, let’s find out what Toyota and Nissan might be coming up with!
The start of it all
This possible alliance began when Nissan tried to join Honda to share costs, technology and international presence; helping both companies mostly with electric vehicles and digital technology. However, conversations between Nissan and Honda didn’t go as planned because of some disagreements on the corporate culture and business strategies. This made Nissan to urgently look for another company to secure its future in an industry that’s changing very fast.
What happened next?
After this failure of trying to join Honda, there were rumors about Nissan immediately starting conversations with Toyota – one of the world’s largest manufacturers in Japan. At the beginning, it was thought to be speculation but specialized media like Electrek and Carscoops reported that Toyota was helping Nissan, and exploring a possible alliance.
After the failed attempt of joining Honda, Electrek said: ‘’Nissan found its saviour: Toyota’’. According to these reports, Toyota would be the ideal partner for Nissan because it has a huge economic capacity, a great presence on the global market and a well established position when it comes to technological innovation and production.
Importance of this alliance
If Nissan and Toyota end up teaming up, this will mean a historic moment in the Japanese and global automotive industry. Why? Let me show you some of the reasons:
- Have most of the global market, so a new rival would join the competition against huge names like China, the United States and Europe.
- Share technology, fabrics and development processes to reduce costs and speed up innovation.
- Advance in areas like electric vehicles, autonomous cars and digitized production.
Why does Nissan depend on Toyota?
Nissan has experienced some difficulties to keep up the rhythm of technological advances in the automotive industry. That’s why they see Toyota as a strategic ally that can contribute financial stability and technique enough to adapt to the current market.
As Electrek says: ‘’Nissan management sees Toyota as the ideal partner to overcome electrification and digitization challenges’’. This shows Nissan is not only looking for support, but also a big change in their business model.
Possible considerations
Even though there’s nothing confirmed yet, there are some possible considerations like: sharing development and investigation facilities, joining manufacturing processes and exchanging key technology. So, it wouldn’t be a complete fusion, but a strategic alliance model that could keep growing with the passage of time.Of course, always having in mind the results.
The world’s reaction to this possible collaboration
Many experts talked about what this could mean for the future of vehicles and the Japanese economy. Some people say this partnership won’t be easy to handle because of differences in organization and culture between Nissan and Toyota. However, most people agree on the fact that taking risks is worth it having in mind the benefits would be so high.
The automotive industry is a very complex sector, it never stops innovating and coming up with new technology, new types of engines and it keeps changing all the time. That’s why some companies have such a difficult time that they even have to rely on other companies with more resources. We don’t know yet if this collaboration will be a reality, but what we know is that it would mean an automotive industry revolution.