Honda and Nissan called off merger talks last week, less than two months after agreeing to explore plans for a new holding company to launch in 2026. Details are beginning to emerge about why the deal fell through, as the two Japanese automakers clashed on two main topics. It's already been reported that Honda wanted to make Nissan a subsidiary, but it seems it also had another major request.
According to The Japan News, the English-language section of the Japanese newspaper Yomiuri Shimbun, Honda dared to ask Nissan to ditch its hybrid powertrain. The unusual request called for Nissan to abandon e-Power tech and adopt Honda's hybrid system instead. This proposal was met with strong opposition, further widening the rift between the two. Although the merger is no longer happening, the two companies will continue to work together on electrified cars.
Nissan is pressing ahead with its e-Power system by preparing a third generation. As announced last week in slideshows for a product roadmap, the next-gen electrified system will be 20% more efficient than the original setup launched in 2016. Additionally, it's projected to be 15% more economical on the highway than the current second-gen system. Nissan aims to slash costs by a fifth compared to the initial system, first seen on the Note compact hatchback.
Nissan will finally launch a hybrid model featuring this technology in the United States, the Rogue e-Power. It is scheduled to be released during FY2026, between April 1, 2026, and March 31, 2027. Meanwhile, a plug-in hybrid Rogue is coming during the FY2025, which runs from April 1, 2025, until March 31, 2026. Elsewhere, Europe's Qashqai and a minivan in Japan will also adopt the third-generation e-Power between FY2025 and FY2026.
It's worth noting that e-Power is not a conventional hybrid system. While it does combine a combustion engine with an electric motor, the ICE is not mechanically connected to the wheels. The gas engine acts as a generator and juices a battery, which uses the energy to power the electric motor. Consequently, Nissan says cars with e-Power behave like EVs.
Since the Note e-Power came out, several other models have received hybrid technology, including the Kicks, Qashqai, X-Trail crossovers, and the Sylphy sedan in China. Mazda has a similar setup for the MX-30 hybrid, but the generator consists of a rotary engine instead. The Zoom-Zoom company has been suggesting that it'll even build a rotary sports car, but that one, too, might use the gas engine as a generator, as seen in the Iconic SP concept. Whatever the case, Mazda is planning a two-rotor gas engine for the US market.
Honda is making progress with its own hybrid system as well. It recently announced the new e:HEV based around 1.5- and 2.0-liter gasoline, direct-injection engines running on the Atkinson cycle. It touts a 10% boost in fuel economy for the hybrids with the bigger gas engine, which are set to lose around 200 pounds compared to current cars. Production costs of next-gen hybrids will drop by as much as 50% by 2027 versus the equivalent model launched in 2018. Honda has already shaved off 25% of the costs of the Accord Hybrid sold in North America over the equivalent car launched in 2018.
Source: The Japan News
