Over the summer, Toyota and Mazda announced a new joint venture that they called "a business and capital alliance. " It included plans to build a factory together and working to develop better connected car technology, but it also included trading about $450,000,000 in stock. That way each company profits when the other succeeds. Around the globe, several other automakers have made similar moves. But if you expect Honda to follow Toyota's lead, you're going to be disappointed.

Automotive News reports that Honda CEO Takahiro Hachigo recognizes automation and electrification will cause major shifts in the global auto industry, but he has no interest in capital partnerships. "We do have a sense of crisis. Things are changing drastically. So we should not be late in responding," Hachigo told Automotive News. "But it's not the case where we have any plans for such equity holdings."

That doesn't mean, however, that Honda plans to develop new technology entirely on its own. In fact, it's been working to develop partnerships with other companies that will avoid shouldering the full cost of developing new technology. "Next year, too, we will build such partnerships speedily," said Hachigo. He would just prefer to do so with agreements that don't involve trading stock around.

For example, Honda recently announced an agreement to develop artificial intelligence with China's SenseTime Group, and last month, it partnered with Japan's Softbank Corp. to bring fifth-generation mobile network tech to future cars. Honda also has a partnership with Hitachi Automotive Systems to develop electric motors and a deal with General Motors to build hydrogen fuel cell stacks in Michigan.

Over the next few years, Honda knows it will have to make sure it doesn't get left behind on the electrification front while still selling more profitable gas-powered cars. "One technical challenge on our side is to try to make it possible to produce gasoline-engine cars, hybrids, plug-in hybrids and battery EVs in the same way at the same factory," said Hachigo. "The biggest challenge for us is how to make that happen."