Nissan and Honda Restart Software Collaboration, Focusing on Smart Cockpits and AI Driving

Tokyo — After announcing a merger at the end of 2024 and subsequently terminating it in February 2025, Nissan and Honda are quietly restarting technical collaboration. According to sources familiar with the matter, as of July 28, the two Japanese automakers have tentatively agreed to cooperate in the software-defined vehicle (SDV) domain, jointly developing a next-generation in-vehicle operating system built upon Nissan's existing technology stack.

This renewed partnership is seen as a continuation of the joint strategy established early in 2024. At that time, Nissan and Honda first publicly proposed deepening coordination in software-defined vehicles and electrification, later upgrading the initiative to a formal merger proposal in December of the same year. However, negotiations collapsed after Honda insisted on leading the integration process — deviating from the original principle of an 'equal merger.' Mitsubishi Automobile subsequently withdrew from the alliance.

Although specific details of the current collaboration remain unconfirmed and no official timeline has been released, both companies confirm they are still exploring synergies across multiple areas — including joint product supply and technology sharing. Notably, over two years have passed since the initial framework was proposed in early 2024, and it has been one year since the merger failed — yet concrete implementation projects remain in the incubation phase.

Industry analysts observe that this renewed cooperation reflects the urgent need for Japanese automakers to close gaps amid accelerating intelligent and electric transformation. Facing dual pressure from Chinese automakers and Silicon Valley tech firms, joint R&D is viewed as a critical path to reduce investment risk and enhance economies of scale.

Per the original 2024 roadmap, the two sides had planned to co-develop a lightweight vehicle OS within one year, targeting mass production and deployment beyond 2027. Nissan CEO Ivan Espinosa stated in April this year that the brand will refocus around its AI-powered ProPilot driver-assistance system, with the long-term goal of equipping 90% of Nissan's vehicle lineup with Nissan AI Drive technology. Meanwhile, Honda CEO Toshio Mibu revealed in May that the company plans to invest ¥1 trillion (approximately $6.2 billion) in software capabilities over its mid-term strategy, leveraging its Asimo OS platform.

"We're exploring multiple possibilities. We'll share updates as progress unfolds," said a spokesperson for Nissan. Honda has not yet commented on the matter.