Honda and Nissan to Partner on EVs and Software

Nissan and Honda are teaming up on electric vehicles and software to speed development and cut costs.

The companies announced Friday that they have signed a memorandum of understanding to begin a feasibility study to explore the possibility of a partnership.

The scope of the study will cover software platforms, core EV components, and other related products, the automakers said in a joint statement.

The Nikkei reported Thursday, citing Nissan sources, that Nissan and Honda are considering working together on vehicle development as well as procurement.

According to the sources, the main goal is to reduce costs so that automakers can compete with cheaper EVs from Chinese brands. China's EV leadership has made it the world's largest auto exporter, surpassing Japan last year.

Honda has already formed a partnership with General Motors to accelerate EV development for North America. The partnership has resulted in the 2024 Acura ZDX and the 2024 Honda Prologue SUV, with deliveries of the Prologue beginning this month. Honda is also working with Sony to create a global EV brand, Afila, with the first vehicle set to launch in North America in 2026.

Nissan is part of an alliance with Renault and Mitsubishi, but neither of these brands has a strong foothold in the key markets of the US and China, where Nissan could benefit most from launching EVs.

Another option for Nissan might be a partnership with Fisker, a cash-strapped EV startup. Reuters reported earlier this month that Nissan is negotiating with Fisker about investing in access to Fisker's planned Alaska pickup truck platform. According to Reuters' sources, Nissan may also build the Alaska for Fisker. Neither automaker has confirmed the talks, although Fisker has said it is in talks with a major automaker.

Update: This article has been updated to confirm that Nissan and Honda are discussing a possible partnership.