During Honda's annual general shareholders' meeting in Japan last week, Honda President and CEO Toshihiro Mibe revealed that the company's collaboration with Nissan has made significant progress, adding that "some aspects are close to an official announcement."

Earlier reports indicated that Honda, Nissan, and Mitsubishi Motors plan to adopt a common Electronic Control Unit (ECU) across a wide range of future vehicles, including hybrid and electric models. The three automakers are still negotiating details such as development cost-sharing and other partnership terms, but an agreement is expected to be reached within weeks rather than months.

Mibe said, "We are proceeding with each project in a win-win relationship."

The jointly developed ECU is expected to enter production around 2029-2030. Once vehicles from multiple brands share the same ECU architecture, further collaboration on software and vehicle technologies will become much easier, as the ECU serves as the foundation of a modern vehicle's electronic and software systems.

However, closer ties between Honda and Nissan could still face a hurdle from Renault, which continues to hold a 15 percent voting stake in Nissan. As a publicly traded company, Nissan must obtain shareholder approval for major capital alliances and strategic partnerships, including any significant collaboration with Honda. This means Renault still retains considerable influence over Nissan's key corporate decisions.

For Honda, strengthening its relationship with Nissan has become more important than ever after the company reported a loss for the fiscal year ended March. Mibe acknowledged that if Honda fails to compete effectively with emerging players in the automotive industry within the next three years, its four-wheel business could face serious challenges.

Source: Carscoops