Shares in Mitsubishi Motors jumped more than 6% on Monday following news that the company might join a strategic partnership between Nissan and Honda.
The collaboration aims to develop and standardize automotive software and electric vehicle components. Nissan and Honda, who announced their intent to team up in March, are already working on electric vehicle technology and AI software.
Adding Mitsubishi to the mix would strengthen their position in the competitive automotive market, particularly against rising EV giants like Tesla and BYD. Mitsubishi, which is 34% owned by Nissan, is expected to help the three companies cut costs and enhance their technology.
The partnership would bring their combined global sales to over 8 million vehicles, challenging rivals like Toyota’s alliance.
Though none of the companies have officially confirmed the details, the potential tie-up has positively impacted their stock prices: Mitsubishi’s shares rose 6.4%, Nissan’s increased by 2.4%, and Honda’s by 2.7%.
