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# Honda, Nissan to tie up after all
- URL: https://torquecafe.com/car-news-honda-nissan-partnership-2029/
- Published: 2026-08-31T23:42:25.000Z
- Updated: 2026-08-31T23:42:25.000Z
- Description: After knocking back a proposed merger last year, Honda and Nissan have agreed to develop standardised electronic components for some future vehicles.
- Author: Jordan Mulach
- Tags: News, Industry

In 2025, Honda and Nissan walked away from a proposed merger between their two brands and Mitsubishi, at the time navigating financial difficulties and a changing market.

With a new CEO at the helm of Nissan and Honda fighting back from its first ever financial loss, the two Japanese marques have now agreed to form a relationship, though not to the in-depth levels as once proposed.

Overnight, Honda and Nissan announced they have “entered into a joint development agreement to standardise multiple electronic control units (ECUs) that form the core of next-generation software-defined vehicles (SDVs)”.

In addition, the brands will develop “the in-vehicle operating system and key parts of the middleware, and vehicle control software that run on these ECUs.”

![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/2026/08/2025-honda-civic-type-r-3.jpg)

Honda Civic Type R

“As part of their strategic partnership, Nissan and Honda continue to explore opportunities for collaboration across a range of areas to accelerate progress toward carbon neutrality and help realize a future with zero traffic fatalities involving their vehicles,” the pair said in a joint media release. 

‘In particular, the software domain centered on SDVs, which is key to vehicle intelligence and electrification, has been identified as an important area of collaboration, given the rapid pace of technological innovation and the need to strengthen competitiveness through improved R&D speed and investment efficiency.”

They noted the need to be more competitive in the current market, flagging faster development cycles as a key to remain in the fight against rapid technological advances from competitors.

“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.”

![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/2026/08/2027-nissan-patrol-y63-12.jpg)

Nissan Patrol

The co-developed technology won’t start rolling out until the 2029 Japanese fiscal year (April 2029 to April 2030), while the door has been left open for future projects.

Earlier this year, Honda announced in May it had posted an operating loss of 414.3 billion yen (A$3.72 billion) for the 2025-2026 Japanese financial year (April 2025 to March 2026), a significant change on its previous operating profit of 1.21 trillion yen (A$10.9 billion).

“I would like to ​express my deepest apologies to our shareholders for the significant concern and inconvenience caused ​by the net loss recorded in the previous fiscal year's financial results,” Honda CEO Toshihiro Mibe said in announcing the results.

Nissan CEO Ivan Espinosa has also previously said his brand “lost our” way prior to taking over, having inherited the control of a company which posted an annual net loss of ¥670.9 billion (A$6.2 billion).