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Oil and water: why Nissan and Honda are setting aside their rivalry

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Oil and water: why Nissan and Honda are setting aside their rivalry

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In the summer of 2020 when the Financial Times reported that Japanese government officials had tried to merge Honda and Nissan, sceptics scoffed at the idea as akin to mixing “oil and water”. Nearly four years later, Japan’s second- and third-largest carmakers (behind Toyota) are planning to combine forces to develop electric cars in a bid to survive the coming wave of high-tech, low-cost models from China. While Honda has ruled out a capital tie-up with Nissan for now, the endeavour is the closest the two historic rivals have ever come in terms of working together.

From the early days of their establishment, Nissan and Honda have taken very different paths to growth. When Nissan started in 1934, Yoshisuke Aikawa, its low-profile founder, built the group into a massive conglomerate during the prewar period through a series of aggressive acquisitions that were funded by taking its companies public. In the case of Soichiro Honda, the charismatic founder of the eponymous carmaker, he was famous for his go-it-alone strategy and is said to have criticised alliances for slowing things down. Until recently, that DNA has stayed with the company. 

Today, the two corporate cultures remain just as different as in the past, but that does not necessarily mean that the planned partnership is doomed to fail. The reasons that have brought the bitter rivals together are similar, although the degree of desperation may vary. Both Nissan and Honda have stumbled in their traditional approaches to expansion, misreading the pace of market changes in China, and they lack the scale and resources to remain competitive global players. 

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After a quarter of a century, Nissan and its French alliance partner Renault have sharply cut back their capital ties as both companies acknowledged that the partnership would not be enough to survive the industry disruption caused by the shift to electric vehicles and tougher emission rules. Nissan chief executive Makoto Uchida is blunt on the need for new partners, although the company insists its alliance with Renault and Mitsubishi Motors will not be unwound. 

Meanwhile, Honda has recognised that going it alone is no longer a viable strategy, striking a surprise partnership with Sony in 2022 to produce EVs. It also has an alliance with General Motors in fuel-cell vehicles and self-driving technology, but the two carmakers last year scrapped plans to jointly develop affordable EVs owing to differences over cost. 

The setback in the alliance with GM was a blow for Honda’s chief executive Toshihiro Mibe, who declared a phaseout from petrol and diesel cars by 2040 when he assumed the role three years ago. Despite this bold target, Honda has been one of the slowest of the big carmakers to roll out EVs.

Both Japanese carmakers, which each sell about 4mn vehicles a year globally, were caught off-guard by the rise of China’s homegrown EV groups, while Nissan missed out on a boom in hybrid vehicles sales in the US because of a lack of offerings in this category. 

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In a recent FT interview, Uchida said Nissan needed partners such as Honda to acquire scale and share costs. “We need to move drastically faster. I don’t know half a year or a year later what could happen to the industry.” 

That uncertainty has also pushed Germany’s Volkswagen to hold talks with Renault to pool resources to develop lower cost EVs. But while the warnings about survival from the industry’s chief executives are dire, it is hard to judge how serious the moves are until products are launched and cost-benefits become clear.

Honda’s tie-up with Sony generated much excitement when it was announced, but it remains unclear how committed the entertainment group is. People close to Sony suggest the project is aimed at gaining manufacturing knowhow of cars, which could then help Sony to sell its automotive image sensors to Tesla and other EV groups. 

Nissan and Honda began talks in January, and the scope of their co-operation includes software, core EV components and auto-intelligence technology. But, so far, only a non-binding memorandum has been signed, and both CEOs expressed caution on how far the partnership would expand. 

At the end of their joint press conference last month, there was an awkward moment when Uchida and Mibe rejected a request by photographers to shake hands. In many ways, the physical distance between the two CEOs is symbolic of the challenges they face in bridging their differences to ensure that the latest partnership is successful.  

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kana.inagaki@ft.com

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

Trump says US stockpiles mean “wars can be fought ‘forever’”

In a late night post on Truth Social, Donald Trump said that the US munitions stockpiles “at the medium and upper medium grade, never been higher or better”.

He added that the US has a “virtually unlimited supply of these weapons”, meaning that “wars can be fought ‘forever’”.

This comes after Trump said that the US-Israel war on Iran could go beyond the four-five weeks that the administration initially predicted. The president also did not rule out the possibility of US boots on the ground in Iran during an interview with the New York Post on Monday.

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“I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!!,” he wrote.

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Key events

During his opening remarks, Senate judicicary committee chairman, Chuck Grassley, blamed Democrats for the ongoing shutdown Department of Homeland Security (DHS) but highlighted four agencies: the Secret Service, Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

Democrats are demanding tighter guardrails for federal immigration enforcement, but a sweeping tax bill signed into law last year conferred $75bn for Immigration and Customs Enforcement (ICE), which means the agency is still functional amid the wider department shuttering.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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