Honda and Nissan close to announcing cooperation deal – report

When the Honda and Nissan merger was cancelled at the beginning of 2025, the two companies pledged to find ways to work together. 

According to Nikkei Asia, the two automakers are currently discussing collaboration in three areas: electronic control units, operating systems, and North American development and production.

Sources say Honda and Nissan are weeks away from announcing an agreement to develop common electronic control units (ECUs) for use by both automakers.

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A typical modern vehicle has many ECUs, each responsible for controlling different aspects, such as the engine, brakes, telematics, transmission, batteries and infotainment.

It's unclear which ECUs will be covered by the deal, but the newspaper's sources indicate they will be used in hybrid and electric vehicles. Mitsubishi, in which Nissan has a large minority share, is understood to be contributing to the cost of ECU development.

If this deal is signed within the next few weeks, the earliest we can expect to see jointly developed ECUs in production vehicles is 2029.

The second area under discussion is standardising in-car operating systems. Combined with the pending ECU deal, this should make it easier, and cheaper, for Honda and Nissan to develop software-defined vehicles with advanced infotainment systems and driver assistance technology.

Lastly, the two automakers are also discussing joint development and manufacturing for the North American market. This could see the two companies working together to develop larger models that are sold primarily in the US, Canada, Mexico and the Gulf States.

Although no models were named, large vehicles produced by the two companies include the Honda Passport, Pilot and Odyssey, as well as the Nissan Murano and Pathfinder. 

An earlier report from Nikkei Asia indicated Nissan could also supply Honda and Mitsubishi with pickup trucks from its underutilised factory in Canton, Mississippi, which currently produces the Frontier.

Honda's only ute is the unibody Ridgeline, which is essentially a Pilot SUV with a bed pasted on the back. If the supply deal does go ahead it could spell the end of the Ridgeline, the second generation of which is already nine years old. 

It would also be the first body-on-frame Honda since the original 1994 to 1997 Passport, which was just a rebadged Isuzu MU, a car which ended up in Australian showrooms as the Holden Frontera.

Should any of these deals get signed, they will be the first concrete collaborations between Honda and Nissan since the two companies officially ended merger talks in March 2025, just four months after announcing they would join forces, largely, to rescue from Nissan from its parlous financial position.

Since then Nissan has wallowed in red ink, installed a new CEO, and undertaken a dramatic restructuring that will see seven factories around the world close.

Honda has fared a little better, but this year announced its first-ever full-year loss after cancelling its ambitious EV rollout in North America just months before the first vehicles went into production.

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