Honda, Nissan Set to Expand Alliance After Merger Talks Collapse
Synopsis
The two automakers are nearing a cooperation agreement focused on technology, software and vehicle development as they seek to cut costs and compete in the EV era.
Honda President Toshihiro Mibe said the company’s plans with Nissan are fairly advanced, and some details in the collaboration could be disclosed soon. Honda and Nissan are actively pursuing a partnership with each other.
In Honda’s case, the dialogue we have is for a common ECU to be equipped on future Honda, Nissan and Mitsubishi vehicles, Mibe said at Honda’s annual shareholder meeting. Reports suggest Honda Nissan cooperation deal announcement could be made within weeks but many funding arrangements and legal terms are still being finalised.
Shared Platform to Support Future Vehicles
The common ECU platform could actually debut by 2029-2030 according to Mibe. The trio of automakers hopes that the shared system will aid software development and improve vehicle dynamics while lowering engineering costs.
Partnership Aims to Cut Costs
Honda said the collaboration coincides with the firm improving competitiveness after seeing its first annual net loss in March. Profits fell $2.7 billion, in part because of its slower roll-out of electric vehicles, increased infrastructure investment and the effect of lower EV tax credits and tariff reductions in North America, the automaker said.
Honda has similarly told investors that it anticipates spending up to $15.7 billion on EV expenses this year alone.
Honda Nissan Mitsubishi shared ECU
The two and Renault have been in an alliance since 1999 focused on shared development costs and manufacturing facilities. Honda is said to want a slice of the action and Renault has reportedly been less than impressed, wielding more pressure on its shareholders to block Nissan’s moves, according to Carscoops.
Nissan reported a domestic increase in sales for 2025 was only up by less than 1% a year ago while they fell again at Mitsubishi, down 13.7% to just over one-third the size of its partner’s business. “Honda would have to beat emerging businesses over the next three years, or Honda’s four-wheel vehicle business could be in serious trouble,” Mibe said.
Source: The West AU
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