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The Software Reboot
Reports of Honda and Nissan potentially merging date back to 2024, but the two Japanese marques struggled to reach an agreement, and the talks eventually collapsed. They even considered jointly developing vehicles and powertrains in the U.S. last year, combining their expertise to reduce costs and become more competitive. At the time, such cooperation was particularly crucial for Nissan given its financial struggles.
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Now, Japan’s Jiji Press, citing informed sources, reports that Honda and Nissan are considering jointly developing an operating system for software-defined vehicles based on Nissan’s technology. The goal is to add or improve functions such as autonomous driving through software updates while making development more efficient. It is a timely strategy, given that software-defined vehicles have become increasingly common since Tesla popularized over-the-air updates in the 2010s.
The Same Code in Different Cars
Car brands sharing software platforms isn’t unusual. At the infotainment level, for instance, the Alfa Romeo Tonale and Dodge Charger Daytona use the same Uconnect 5 platform because both brands are owned by Stellantis. What makes the reported collaboration between Honda and Nissan notable is that the two automakers remain separate companies.
Honda isn’t owned by another automotive corporation and operates the Acura luxury brand. Nissan is likewise an independent company, although it remains closely tied to the Renault-Nissan-Mitsubishi Alliance. That relationship helps explain why Mitsubishi is launching the Nissan Leaf-based Eclipse Sportback EV.
If Honda and Nissan deliver on this collaboration, Honda vehicles could share some underlying software and connected features with Nissan models, though each brand would likely retain its own interface and feature set.
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Start With Software, See Where It Goes
Although the original merger talks collapsed, Nissan has recently shown signs of recovery, even finishing 2025 as the fastest-growing mainstream brand in the U.S. It also plans to expand its body-on-frame lineup for the U.S. market, including the returning Xterra, which will compete with models such as the Ford Bronco and Jeep Wrangler.
Honda, on the other hand, has been absorbing heavy losses tied to its revised EV strategy. The automaker recently confirmed that it will discontinue the Prologue after the 2026 model year, just a few years after the electric SUV debuted.
Perhaps the best-case scenario is for the two automakers to expand their project-by-project cooperation, starting with vehicle software, until they find an arrangement that benefits both sides. After all, Nissan reportedly feared losing its independence and decision-making authority under the earlier merger terms. A deeper alliance could eventually allow them to pool complementary resources, including Nissan’s body-on-frame expertise and Honda’s strong hybrid technology, as demonstrated by the CR-V and Civic.
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