Honda (HMC), Nissan Edge Toward a Software Alliance

On August 29, Reuters reported that Honda Motor Co. Ltd. and Nissan Motor are considering a joint agreement to jointly develop a vehicle operating system and onboard computer. According to Japan's Nikkei newspaper, the collaboration could lead to new models arriving as early as 2029. This development indicates a renewed cooperation between the two Japanese automakers, following their aborted $60 billion merger talks a year ago.

Honda has discussed potential collaboration areas with Nissan and Mitsubishi Motors under their existing strategic partnership, but no deal has been finalized. Nissan CEO Ivan Espinosa confirmed that talks with Honda over software collaboration are underway, and Honda's management has also acknowledged the exploration of cooperation with Nissan on software-defined vehicles, batteries, and shared vehicle platforms.

A shared computing platform could allow Honda to spread the cost of software development across a larger pool of vehicles, an advantage smaller automakers often lack. This potential collaboration is notable as Honda's core business is performing better than expected, with operating profit for the fiscal first quarter reaching a record JPY530.7 billion in August 5.

However, the deal remains a report, and Honda and Nissan have a history of talks that have not led to an agreement.