Honda, Nissan And Mitsubishi Are Still Teaming Up After Failed Merger Talks

The Merger Collapse Aftermath

Back in late 2024, some of you might remember the planned merger between Nissan and Honda. But as quickly as it was drummed up, the deal crumbled before it could even get off the ground. At the time, it was said that Honda would eventually take over Nissan, something the latter did not want.

In the end, everything was scrapped, but Nissan, Honda, and Mitsubishi agreed to continue collaborating on other matters. It was the automotive industry's equivalent of 'can we still be friends?'

Still Working Together

While we won't be seeing any Nissan and Mitsubishi-badged Hondas and vice versa, the three brands are still working together through a strategic technology partnership. The main goal is to standardize key components to spread development costs across the three brands.

As reported by Nikkei Asia, the trio is now in final talks on standardizing electronic control units among themselves. The plan is to roll these out as the next generation of their respective vehicles is introduced. A collaborative effort is underway to achieve the development rate currently set by the Chinese auto industry.

The Goal

As a whole, the automotive sector is evolving into a software-driven arms race. Japan, like Europe, has been lagging behind in that aspect, hence the need for further collaboration among legacy automakers. China's rapid pace is something that the industry has never seen before, and now, it's a fight to stay relevant.

Sharing development resources won't just speed up R&D but also significantly cut costs. Chinese automakers have subsidies on their side, allowing them to undercut legacy automakers by a hefty margin. Reducing costs will allow the likes of Honda, Nissan, and Mitsubishi to at least narrow the price gap between them and Chinese cars.

Shared ECUs won't just revolve around the powertrains, either. It's likely that common components will also help hasten advances in safety systems, suspension technologies, and infotainment. Vehicle diagnostics could also benefit from a shared system as it's uniform, further easing repairs and maintenance.

History Repeats Itself

Once the pioneers of forward-thinking tech, the Japanese auto industry finds itself in an unusual spot, one wherein it's on the back foot and playing catch-up. China has slowly but surely eroded market share in Asia, and it's spreading around the world right now. Sure, there are those who will stick to Japanese-branded vehicles in years to come, but those looking for cars with strong value propositions will see the appeal of Chinese cars, especially those more than willing to overlook brand and heritage for a better deal.

It's a bit like the '70s all over again with a relatively young car industry shaking up the establishment. This time around, it's not Japan ruffling feathers, but rather, China. The difference is that Japan is trying to adapt rather than resist and lobby the changes by studying the upstarts.

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This story was originally published June 25, 2026 at 8:45 AM.