The great Honda-Nissan merger may have fallen through but the two Japanese automakers are still planning to work together.

The two companies had formerly been in merger talks but those plans fell through in early 2025.

Now, more than a year later, Nissan and Honda announced they’ve entered a joint development agreement, with a plan to standardize multiple electronic control units (ECUs) and software.

The ECUs will form the core part of next-generation software-defined vehicles, the brands said.

On the software side, Nissan and Honda will standardize an in-vehicle operating system and key parts of middleware and vehicle control software, which will run on the standardized ECUs.

The companies plan to launch these new ECUs and software in their vehicles in fiscal year 2029.

Further collaboration planned

The companies said they are collaborating on software due to the need to strengthen their competitiveness through faster development cycles and more efficient investment.

“By standardizing these foundational technologies, Nissan and Honda aim to leverage their combined engineering expertise and development resources to improve efficiency, accelerate innovation, and enhance competitiveness through reduced development costs and greater economies of scale,” the companies said in a news release.

“Going forward, Nissan and Honda will continue to build on their respective strengths, explore opportunities to create new value, and deepen collaboration to bring tangible benefits to customers and society.”

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