Honda and Nissan are reportedly exploring a new partnership focused on software-defined vehicles, shifting their collaboration from merger discussions to joint software development. According to Japan’s Jiji Press, citing informed sources, the two automakers are considering developing a shared operating system based on Nissan’s technology to improve vehicle functions through software updates.

Focus Shifts From Merger Talks to Software Development

Reports of a potential merger between Honda and Nissan first surfaced in 2024, but the companies were unable to reach an agreement, and the discussions ultimately ended.

The automakers also explored jointly developing vehicles and powertrains for the U.S. market last year as a way to reduce costs and improve competitiveness. At the time, such cooperation was viewed as particularly important for Nissan because of its financial struggles.

According to Jiji Press, the latest discussions center on creating an operating system for software-defined vehicles using Nissan’s technology.

Shared Software Could Expand Vehicle Capabilities

The reported operating system would allow features such as autonomous driving to be added or enhanced through software updates while making development more efficient.

Software-defined vehicles have become increasingly common since Tesla popularized over-the-air software updates during the 2010s, making software an increasingly important part of vehicle development.

Independent Automakers Exploring a Shared Platform

Sharing software platforms is already common within automotive groups. For example, the Alfa Romeo Tonale and Dodge Charger Daytona both use the Uconnect 5 infotainment platform because their brands operate under Stellantis.

The reported Honda-Nissan collaboration stands out because both companies remain independent automakers.

Honda operates independently and includes the Acura luxury brand within its portfolio. Nissan is also an independent company while maintaining close ties through the Renault-Nissan-Mitsubishi Alliance. That relationship also explains why Mitsubishi is introducing the Nissan Leaf-based Eclipse Sportback EV.

If the reported software collaboration moves forward, Honda vehicles could share underlying software architecture and connected technologies with Nissan models while each brand maintains its own interface and feature set.

Automakers Continue Moving in Different Directions

Although the earlier merger discussions ended, Nissan has recently shown signs of recovery, finishing 2025 as the fastest-growing mainstream automotive brand in the United States.

The company also plans to expand its body-on-frame lineup for the U.S. market, including the return of the Xterra, which will compete with vehicles such as the Ford Bronco and Jeep Wrangler.

Honda, meanwhile, has been absorbing significant losses related to its revised electric vehicle strategy. The automaker recently confirmed it will discontinue the Prologue after the 2026 model year, only a few years after the electric SUV debuted.

Project-by-Project Cooperation Could Continue

The reported software initiative could represent the beginning of broader cooperation between the two companies on individual projects rather than through a full corporate merger.

According to the report, Nissan previously expressed concerns about losing its independence and decision-making authority under the earlier merger proposal. A deeper partnership could eventually allow both automakers to combine complementary strengths, including Nissan’s body-on-frame expertise and Honda’s hybrid technology, as demonstrated by the CR-V and Civic.