Honda and Nissan to Share Car Software from 2029
Honda and Nissan have agreed to share the software in their cars, starting with the 2029 fiscal year. After eighteen months of merger talks breaking down over control issues, the two companies signed a joint development agreement covering:
- Electronic Control Units (ECUs)
- In-vehicle operating system
- Middleware
- Vehicle control software
Faster development cycles and more efficient investment are cited as primary motivations for this collaboration. While specific cost savings and implementation details remain undisclosed, the move aims to standardize core ECUs, including those controlling brakes, steering, batteries, and cabin functions, along with their interfaces.
The agreement is notable both for its scope and timing:
- Narrower than a merger: This collaboration focuses on software sharing rather than full integration of operations.
- Long lead time: The need for standardization of core ECUs means decisions must be made years in advance, limiting flexibility for future changes.
Competition from China, specifically BYD’s advancements in chip technology and LiDAR integration, is a driving force behind this partnership. Chinese EV brands have been gaining market share in Europe at a rapid pace, in part due to their strong software offerings.
This agreement between Honda and Nissan sets a precedent for shared platforms in the automotive industry, but adds complexity through the need for independent decision-making while maintaining compatibility.