More than a year after a planned merger between Honda and Nissan collapsed, the two Japanese automakers are set to get together again, but this time through collaboration. According to news reports, both companies are considering using shared core parts for their next-generation software-defined vehicles to reduce development and procurement costs.
As Nikkei Asia reports, Honda CEO and president Toshihiro Mibe has confirmed that a deal with Nissan along these lines is on, telling shareholders that negotiations between the two brands were quite far along, with some aspects “close to an announcement.” He didn’t detail areas of the collaboration, merely stating that it was proceeding, with each project in “a win-win relationship.”
Sources close to the matter say the two brands, along with Mitsubishi, are thinking of standardising the electronic control units (ECUs) for next-generation vehicles, according to Jiji Press. These shared ECUs would be used by all three brands in vehicles scheduled to arrive towards the end of the decade, with the first examples coming about as early as 2029.
The automakers are also discussing standardising the operating system that runs in-vehicle software. Of course, the potential collaboration will have to iron out areas regarding development funding and other relevant terms, but it is expected that an agreement will come about within weeks. Renault is expected to have a say in the deal, as it still holds a 15% stake in Nissan.
The re-association follows the developments from last year, when a merger between the two companies ultimately fell through. Initially stated as a merger of equals when a MoU was inked in December 2024, Honda then proposed a change in structure as discussions moved along.
Rather than establishing a joint holding company, where Honda would appoint the majority of directors and the CEO based on a joint share transfer as initially outlined, it was proposed that Honda would be the parent company and Nissan the subsidiary through a share exchange. Nissan didn’t want to be a subsidiary, and it was officially announced in February 2025 that the deal was off.
Despite this, both parties indicated that they would continue to “collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles,” in line with previous MoUs focusing on joint research on vehicle intelligence and electrification. It would seem that the upcoming announcement will centre around these.
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