Advertisement
Canada markets close in 4 hours 45 minutes
  • S&P/TSX

    22,048.13
    -10.90 (-0.05%)
     
  • S&P 500

    5,572.79
    +5.60 (+0.10%)
     
  • DOW

    39,500.22
    +124.35 (+0.32%)
     
  • CAD/USD

    0.7338
    +0.0006 (+0.08%)
     
  • CRUDE OIL

    82.80
    -0.36 (-0.43%)
     
  • Bitcoin CAD

    76,999.40
    -467.93 (-0.60%)
     
  • CMC Crypto 200

    1,203.36
    +37.25 (+3.20%)
     
  • GOLD FUTURES

    2,381.40
    -16.30 (-0.68%)
     
  • RUSSELL 2000

    2,049.49
    +22.76 (+1.12%)
     
  • 10-Yr Bond

    4.2840
    +0.0120 (+0.28%)
     
  • NASDAQ

    18,385.95
    +33.19 (+0.18%)
     
  • VOLATILITY

    12.51
    +0.03 (+0.24%)
     
  • FTSE

    8,200.83
    -3.10 (-0.04%)
     
  • NIKKEI 225

    40,780.70
    -131.67 (-0.32%)
     
  • CAD/EUR

    0.6770
    +0.0008 (+0.12%)
     

Nissan (NSANY) & Honda (HMC) Plan to Co-Develop EV Software

Nissan Motor Co., Ltd. NSANY and Honda Motor Co., Ltd. HMC are contemplating a partnership to develop EV software and build charging networks.

Their goal is to share costs and accelerate the development of new technology and infrastructure, aiming to catch up with global competitors in the transition to zero-emission and software-defined vehicles. These companies are currently finalizing details of agreements for the joint development of a shared operating system and other software.

Neither Honda nor Nissan has commented on these recent reports. However, per Nissan, both companies are exploring various collaborations and will make an announcement at the appropriate time.

Reportedly, in March, the two automakers began early-stage discussions to jointly procure and share major BEV components in Japan to reduce costs and compete in the rapidly evolving global BEV market.

Facing increasing competition from global EV leaders like Tesla and new players from China and South Korea, Nissan and Honda's partnership aims to reduce production costs and streamline operations, making their EVs attractive to price-sensitive consumers.

This collaboration reflects a broader trend of traditional automakers teaming up to thrive in the EV era. Pooling resources to standardize software and enhance EV infrastructure will not only help Nissan and Honda cut costs but will also expedite global EV adoption.

In the first five months of 2024, Nissan sold slightly more than 50,000 EVs globally, representing 3.5% of its total worldwide sales of 1.4 million vehicles.

During the first three months of 2024, Honda sold 3,190 EVs, constituting 0.3% of its nearly one million global retail sales.

Zacks Rank

While NSANY has a Zacks Rank #4 (Sell), HMC carries a Zacks Rank #2 (Buy) at present.

Key Picks

Some top-ranked stocks in the auto space are Blue Bird Corporation BLBD and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 5 cents in the past 60 days. The EPS estimates for 2025 have moved up 20 cents in the past 30 days.

ADVERTISEMENT

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report

Nissan Motor Co. (NSANY) : Free Stock Analysis Report

American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report

Blue Bird Corporation (BLBD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research