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Toshihiro Mibe, the new CEO of Honda Motor, speaks at his first press conference on April 23, 2021 in Tokyo, Japan. Issei Kato/Reuters (Reuters) – TOKYO, July 16 (Reuters) – On Friday, Honda Motor Co.’s (7267.T) new CEO stated that the Japanese automaker was eager to develop new alliances in order to make electrification economical. When asked how he envisions global electrification partnerships, Toshihiro Mibe, who took over as CEO in April, said, “If through an alliance Honda can achieve early what it should aim for, then we’d be willing to create an alliance.” Mibe’s remarks reflect the global auto industry’s pressure to share technology and expenses in order to meet demand for greener automobiles. He has taken over as CEO of Japan’s second-largest manufacturer at a time when the automotive industry is shifting toward electric vehicles (EVs) and autonomous driving. Honda and its alliance partner General Motors Co (GM.N) have announced that in 2024, they would launch two jointly designed large-sized EV models in North America, using GM’s Ultium batteries, as well as a series of new models based on the ‘e:Architecture’ EV platform. The two businesses already work together on autonomous vehicles and fuel-cell vehicle (FCV) technology, and they’re looking at expanding their partnership. Honda has stated that by 2040, electric and plug-in hybrid vehicles will account for 100 percent of total sales. Electric vehicles, like home appliances, reduce in price quickly once they hit the market, according to Mibe. “Considering how electrification is not commercially possible right now,” he continued, “forming an alliance will become a big direction in terms of boosting the number of electric vehicles.” Honda debuted its first mass-produced all-battery vehicle in August, a company famed for its fuel-efficient internal-combustion engines. Honda could set itself apart in the electrification race by developing next-generation batteries for electric vehicles, according to Mibe. Honda’s CEO also stated that the company expects its automobile business profitability to improve in the coming fiscal year as a result of the closure of numerous unprofitable manufacturing plants, including those in the United Kingdom, Turkey, and Japan. Honda’s operating income margins for bikes and vehicles were 13 percent and 1 percent, respectively, last year. Honda is considering a new digital service or business based on consumer data, according to Mibe, who said that the corporation will use electrification as an opportunity to examine its product selection and increase profitability. Maki Shiraki contributed reporting, Eimi Yamamitsu wrote the story, and Jacqueline Wong and Muralikumar Anantharaman edited it. The Thomson Reuters Trust Principles are our standards./nRead More

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