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How Japan's Auto Industry Became Two Factions To Survive The EV War

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As China's EV makers aim for world dominance, Japanese carmakers have been left in the dust. Can teaming up help them bounce back?

'Coming together is a beginning,' Henry Ford once said. 'Keeping together is progress. Working together is success.' Japanese automakers, the behemoths of automotive mass production, have fallen behind in the electric vehicle race. Eyeing burgeoning Chinese, American and Korean carmakers, they’ve realized that uniting is the best way forward. Now one coalition is led by Toyota. The other is led by Honda.

Its CEO Carlos Tavares threatened last week to kill any of these brands that don’t make money. 'If they don't make money, we'll shut them down,' Carlos Tavares said. He didn’t single out any particular brand, but sources told Reuters that Stellantis could try to sell Maserati and kill off Lancia or DS. Chrysler and Ram, both headed by industry veteran Christine Feuell, may not be on the immediate chopping block, but they face an uncertain future.

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