Nissan Motor and Honda Motor have agreed to jointly develop key systems and software and systems for next-generation vehicles, following the collapse of their merger talks last year. The agreement, signed Monday, aims to standardize core technologies to be implemented in vehicles starting in the fiscal year beginning April 2029. By combining engineering expertise, the automakers seek to reduce development costs and achieve greater economies of scale, particularly in software critical for vehicle intelligence and electrification.

The collaboration builds on discussions initiated over two years ago regarding electric vehicles, core components, and software. Nissan and Honda will continue exploring other collaborative opportunities under their strategic partnership. Their relationship has been strained, notably after a December 2024 merger proposal was abandoned less than two months later when Honda sought to make Nissan a subsidiary.