Nissan, Honda to Jointly Develop Key Systems, Software for Next-Generation Vehicles — Update

By Kosaku Narioka

Nissan Motor and Honda Motor have agreed to jointly develop key systems and software that form the core of next-generation vehicles, after a planned merger fell through last year.

The Japanese automakers said Monday that they signed a joint development agreement and aim to adopt the architecture incorporating the jointly developed systems and software in their vehicles from the fiscal year starting in April 2029.

By standardizing these technologies, Nissan and Honda aim to leverage their combined engineering expertise and resources to improve competitiveness through reduced development costs and greater economies of scale, the two companies said.

Software, which is crucial to vehicle intelligence and electrification, has been identified as an important area of collaboration, given the rapid pace of technological innovation, they said.

The agreement came after the companies said they would study ways to collaborate on electric vehicles, their core parts and software more than two years ago.

The automakers will continue to explore opportunities for collaboration in other areas as part of their strategic partnership, they said.

Nissan and Honda have had a rocky relationship. In December 2024, the automakers disclosed a plan to merge, only to end merger talks less than two months later. Talks broke down after Honda sought to make Nissan a subsidiary.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 31, 2026 05:55 ET (09:55 GMT)