Honda & Nissan in Discussion to Co-Develop Advanced Auto Software

Group 1: Joint Software Development - Honda Motor Co., Ltd. and Nissan Motor Co., Ltd. are in discussions to jointly develop and share a foundational software platform for advanced vehicle control systems to compete with leading U.S. and Chinese automakers in the software-defined vehicles (SDVs) market [1][9] - The two companies aim to introduce vehicles utilizing the new software in the latter half of the decade, emphasizing the need for massive data inputs for development and operation, making collaboration crucial for innovation and cost reduction [2] Group 2: Strategic Manufacturing Agreement - Nissan may begin manufacturing pickup trucks for Honda at its U.S. plants under a proposed strategic agreement, allowing Honda to diversify its U.S. vehicle lineup and mitigate the financial impact of new tariffs [5][6] - The proposed manufacturing agreement could enhance profitability for both firms, especially as recent tariff increases on Japanese imports are projected to reduce Honda's operating profit by ¥650 billion and Nissan's by up to ¥450 billion in fiscal 2025 [6]