Nissan and Honda are set to collaborate on the development of computer components and software for vehicles as a growing number of automakers seek partnerships to cut costs and remain competitive.
The details: The joint venture, announced Monday (Aug. 31), comes two years after the two Japanese automakers began talks to collaborate on electric-vehicle development, according to AP News.
The agreement doesn’t specifically mention EVs, though software-defined vehicles could potentially include electric models.
Software-defined vehicles are designed to update features and functions through the cloud or downloads rather than relying solely on mechanical fixes.
Why it matters: Sharing software and component development could help Nissan and Honda lower technology costs and accelerate new vehicle features, potentially giving dealers access to more competitive products and faster updates as software becomes increasingly important to the ownership experience.
Between the lines: The Nissan-Honda partnership also comes as more automakers seek collaborations to share components, research and product development, helping spread rising technology costs and improve profitability.
Volkswagen, BMW, Mercedes-Benz and Stellantis are collaborating on software development to share the same operating system.
Ford and Chinese automaker Geely announced in July plans to collaborate on low- and zero-emission vehicles at Ford's Valencia, Spain, factory.
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What they’re saying: “Recognizing the need to strengthen competitiveness through faster development cycles and more efficient investment, the two companies have conducted extensive studies on potential collaboration in the software domain,” said Nissan and Honda in a statement, per AP News.
Bottom line: The Nissan-Honda collaboration reflects a broader shift toward automakers sharing the growing cost and complexity of vehicle technology rather than developing everything independently, a strategy that could help manufacturers preserve investment in competitive products and features that ultimately reach dealer showrooms.
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