It has been widely known that Honda has been in active discussions with Nissan about forming a strategic partnership, and now Honda’s president, Toshihiro Mibe, has confirmed that the agreement is nearly finalized. After two years of speculation surrounding potential mergers and rejected proposals, it seems that three of Japan’s major automotive manufacturers may soon begin working together.

According to a report from Reuters, Mibe stated during Honda’s annual shareholder meeting that the partnership is “quite far along, with some aspects close to an announcement.” The collaboration primarily revolves around developing a shared electronic control unit (ECU) platform that will be used across upcoming Honda, Nissan, and Mitsubishi models. While questions remain about funding and legal frameworks, Nikkei Asia has reported that the final deal may be just a few weeks away.

Mibe indicated that the unified ECU system could be introduced as early as 2029 or 2030. Once operational, the shared platform aims to streamline software development and enhance vehicle dynamics across the three companies. The timing of this announcement is significant, as Honda recently reported its first-ever annual net loss in March, with profits falling by $2.7 billion.

Mibe attributed part of this financial downturn to Honda’s delayed entry into the electric vehicle (EV) segment. The company not only lost potential revenue from early adopters but also faced steep infrastructure costs as it tried to catch up. Additional challenges such as the reduction of EV tax credits and the introduction of new tariffs in the North American market further affected Honda’s profitability. Earlier this year, Honda advised investors that it expects to incur $15.7 billion in EV-related expenses during this fiscal year.

Collaborating with Nissan and Mitsubishi to share development costs would represent a major advantage for Honda. However, the alliance could face complications due to Nissan and Mitsubishi’s longstanding partnership with Renault, which has been in place since 1999. That alliance primarily focuses on joint development and shared production facilities. Reports from Carscoops suggest that Renault has been resistant to Honda’s involvement and has allegedly urged shareholders to oppose Nissan’s participation in the proposed deal.

Despite potential obstacles, all the companies appear to recognize the urgency of the situation. Nissan’s domestic sales are projected to grow by less than one percent through 2025, while Mitsubishi has experienced a 13.7 percent year-over-year drop in sales. Mibe emphasized that Honda must “outpace emerging competitors within three years,” warning that the company’s “four-wheel division could face serious challenges” otherwise. While the exact scope of the Honda-Nissan collaboration remains uncertain, it is clear that the move has the potential to significantly reshape the global automotive landscape.