Honda and Nissan are expanding their technological alliance to include parts affiliates Astemo and JATCO. The automakers aim to co-develop components for next-generation vehicles following the collapse of previous merger talks.

The partnership focuses on standardizing core components like electronic control units (ECUs) for software-defined vehicles (SDVs). This collaboration targets significant cost reductions to improve competitiveness against U.S. and Chinese rivals.

Both companies are discussing joint development for autonomous driving functions using digital simulation and analysis. A final agreement is expected in the summer.