In late 2024, Honda and Nissan made the industry-shattering announcement that they were investigating a potential merger. The tie-up would have brought two of Japan’s biggest automakers under one roof. However, Nissan backed out of the deal when it turned out the companies wouldn’t have been equals in the partnership. Instead, Honda essentially would have been the leader of the future corporation.
Now, Honda and Nissan are back at the negotiating table, but for a different reason. Mitsubishi would be part of the deal, too. This time, they aren’t negotiating a merger, though. The companies are crafting an agreement to use a standardized electronic control unit in their future vehicles. But what exactly does that mean in the context of a partnership?
Honda CEO Toshihiro Mibe announced the news during Honda’s annual general shareholders meeting, stating that the companies were “quite far along, with some aspects close to an announcement.”
A Honda and Nissan Partnership
The Honda Prologue and the Nissan Rogue.Honda/Nissan
The terms of the prospective deal between Honda, Mitsubishi, and Nissan aren’t yet publicly available. However, the agreement could be complete within a few weeks. The companies are reportedly negotiating sharing development funds to create these new ECUs. By sharing the architecture among three automakers, they could take advantage of economies of scale to reduce production costs. The first vehicles with these ECUs could be ready as soon as 2029.
“We are proceeding with each project in a win-win relationship.”
– Honda CEO Toshihiro Mibe
Renault could be the major roadblock to completing this deal, though. It has a 15% voting stake in Nissan, and the two automakers extensively share platforms and technology. During the Nissan shareholders’ meeting, Renault allegedly influenced investors not to vote for a new outside director, according to Nikkei Asia. The incident illustrates that Renault keeps a close eye on what Nissan does, even in Japan.
!!!MODEL TAG!!! Listing Carousel Honda
/cars/honda/
The History Of The Honda-Nissan Deal
Honda Nissan LogoHonda/Nissan/CarBuzz
In December 2024, Honda and Nissan officially confirmed their merger plans. The tentative plan was that they would sign a Memorandum of Understanding (MOU), and then take until June 2025 to negotiate a firm agreement. The deal would have then gone to the respective shareholders for a vote. If everything had worked as planned, then Honda and Nissan would have merged in August 2026. For a while, it also looked like Mitsubishi might have joined the merger.
Related
Nissan Might Ditch Honda In Favor Of A Tech Company
Nissan is likely to break up with Honda, according to internal sources. The beleaguered automaker might mate with iPhone manufacturer Foxconn instead.
However, the deal fell apart quickly after the December announcement. By February 2025, the deal was already dead. Honda was in far better financial shape than Nissan and intended to press that advantage. Honda would have had the right to appoint the chief executive officer and the majority of directors for the merged automakers.
Since killing the deal, Honda and Nissan have continued to be partners on smaller projects. For example, they agreed to work on software together. In 2025, they also investigated ways to mitigate tariff risks in the US. As such, the latest news sounds like an extended version of the current relationship, though one that leads to a physical product. Whether it comes to fruition or dies out remains to be seen.
CarBuzz Insight – Why This Matters:
As the automotive industry evolves in a turbulent economy, mergers seem more likely. Engineering and manufacturing cars are only becoming more expensive, so it makes sense for automakers to combine forces. Honda and Nissan seem like ideal partners. Both are well-established brands with robust, competitive products across a variety of global markets.
Related
Nissan Investors Are So Upset, Some Of Them Want Fugitive Ghosn Back
Nissan CEO Espinosa had some tense moments during the company’s annual shareholder meeting.
In the US, the strategy could be for Honda to focus on the mainstream market, Acura to target the premium segment, and Nissan to focus on its slightly more rugged products, such as the new versions of the Pathfinder and the Xterra on the horizon. Sorry, Infiniti, your time has come for retirement – as part of this hypothetical strategy, anyway.
Source: Nikkei Asia
