Honda and Nissan to Develop Vehicle Software Together, Nikkei Reports

Japanese automotive giants Honda Motor and Nissan Motor are poised to collaborate on a significant technological advancement, planning to jointly develop a new operating system and onboard computer for their vehicles. The Nikkei business daily reported that an agreement between the two manufacturers is anticipated as early as Monday, signaling a renewed push for technological integration.

This venture aims to see the co-developed software and hardware implemented in their cars by 2029. The move follows extensive negotiations between Honda and Nissan, which had previously explored a full merger. Those merger talks, initiated in late December 2024, officially collapsed in February 2025 due to disagreements over the power structure and ownership of a combined entity. Despite the failed merger, both companies committed to continuing cooperation within their existing strategic partnership framework, particularly for the development of electrified and intelligent vehicles.

The collaboration comes at a time when both automakers have reported substantial financial figures. Honda recorded a net loss of 423.941 billion yen ($2.684 billion) for the fiscal year 2025, which ended in March, largely due to the cancellation of three electric vehicle projects planned for North America. However, the company saw a significant rebound in the first quarter of the current fiscal year, posting a net profit of 450.915 billion yen ($2.9 billion), a 129.3% increase year-on-year.

Nissan also faced financial headwinds in fiscal year 2025, reporting a net loss of 553.095 billion yen (approximately $3.5 billion), influenced by factory closures as part of its restructuring plan. Nevertheless, Nissan achieved a net profit of 3.761 billion yen (around $24 million) in the first quarter of the current fiscal year, indicating a potential turnaround.

“

Honda and Nissan plan to jointly develop an operating system and an onboard computer for their vehicles thanks to an agreement that is expected this Monday.