Honda Motor and Nissan Motor are planning to jointly develop a next-generation operating system for software-defined vehicles (SDVs), which allow for functions to be added or improved via software updates. This collaboration aims to standardize the core technology for their vehicles, which is expected to improve development efficiency and bolster their competitive stance against rivals in the US and China. This partnership on a crucial technology underpinning future vehicles will allow both Japanese automakers to reduce significant investment costs. The move follows the collapse of previous merger discussions, though the companies had continued to explore opportunities for project-based cooperation. A formal agreement on the joint technology-development framework is reportedly expected in August.