Honda Targets Tech Tie-Ups Over Cross-Equity Deals

Honda Motor Co. plans to accelerate its recent push to partner with other companies on emerging technologies—but don’t expect any equity deals with other carmakers.

Next year the company will “speedily" build such partnerships, CEO Takahiro Hachigo tells Automotive News. Pointing to a “sense of crisis” within the industry regarding automated vehicle systems, ride-sharing services and other disruptive technologies, Hachigo says Honda can’t risk being late in responding to such drastic changes.

In the last two months Honda has launched research and development programs with China’s SenseTime Group and Japan’s Softbank Corp. to collaborate on artificial intelligence and 5G communication systems, respectively. Honda’s new joint venture with Hitachi Automotive Systems Ltd. has begun producing motors for electric vehicles.

Honda also is expanding its Xcelerator program, which the carmaker started two years ago to help identify and fund tech startups. The company plans to announce several collaborations under the program at next month’s CES electronics show in Las Vegas.

But unlike Japanese rivals Toyota and Nissan, Hachigo says Honda has no plans to have cross-ownership relationships with other carmakers. Toyota holds equity in Isuzu, Mazda and Subaru and has a partnership with Suzuki. Nissan is part of a three-way alliance with Renault and Mitsubishi Motors.

The closest Honda comes to such a partnership is the fuel cell joint venture it formed earlier this year with General Motors Co. The partners are investing $85 million into the 50:50 venture to produce fuel cell stacks for both companies at a new plant in Michigan starting in 2020.