Honda & Nissan Team Up To Build Next-Gen Car Software Amid China’s EV Surge News24 –

Earlier this year, one of the most anticipated mergers was to take place between the leading manufacturing giants, Nissan and Honda. But the collaboration could not be established due to certain reasons. While the former ambitious plan to come together has been shelved, both companies have now decided to move forward with a more focused partnership, according to Nikkei Asia.

The new strategy would focus on the process of new software platforms for the next generation of vehicles. This would be a strategic shift, aimed at contributing to the rapidly progressing software design landscape and connected mobility.

Evidence of the collaboration would be seen in the production of cars that will be launched in the market in the future. With these new changes, the brands will transition away from hardware toward software ecosystems that will help them compete in the new turf of competitiveness.

Building a Shared Software Core

Nissan and Honda have been investing in research for the next generation of automotive software. The new strategy would extend beyond the existing systems and aim for an all-encompassing digital platform that will form the foundation of the next-generation models. The core of the initiative is the ambition to standardize elements like electric motors and semiconductors—technologies that would form part of their common architecture.

With the new system, both companies will use data interchangeably and gather necessary insights into consumer preferences, helping them further streamline their products. Media reports have revealed that this new communion on the roads would be a $10 billion project with a long-term payoff. It may eventually take the form of repeat business and sustained revenue, as the brands plan to move forward with software updates and upgrades.

Short-Term Plans

Nissan and Honda would continue working on their respective platforms for future models. Eventually, however, the goal would be to introduce a shared core topped with brand-specific interfaces. It would be similar to how an operating system provides bespoke user experiences.

Both brands have been planning to build cars from scratch. Whether this software partnership provides the margin of innovation required to keep pace with fast-moving competitors remains to be seen.

With inputs from HT Auto Desk.