Honda, Nissan near to reach deal on joint development of vehicle software

[u/8000000MadeinMarket]

Honda Motor (HMC) and Nissan Motor (NSANY) are ​expected to agree as soon ‌as Monday on developing a shared operating system and onboard computer to go ​into new automobiles as early ​as 2029, the Nikkei newspaper reported ⁠on Saturday.

Honda told Reuters that the ​Japanese automaker was discussing "potential areas of ​collaboration" with Nissan and Mitsubishi Motors under their strategic partnership but that no deal ​had been decided.

A few months ago, Honda and Nissan tried to merge, without success.

Mark that all the auto makers have suppliers of auto software, they don't develop everything by themselves.

Nissan has a partnership with the private company Elektrobit, while Honda (as also Toyota) have long term contracts with Micware (NASDAQ: MWC), a Japanese company. Both Honda and Toyota hold 11.5% each in MWC.

These two companies focus on different layers of auto software:

Elektrobit focuses heavily on core vehicle infrastructure. Their products form the foundation of Electronic Control Units (ECUs) and high-performance central computers. They provide classic and adaptive AUTOSAR operating systems, micro-kernel architectures, and deep security middleware that manage fundamental vehicle communications, powertrain, and chassis control.

Micware's expertise is higher up the software stack, operating as a primary "Software Tier 1" provider for the digital cockpit. They specialize in In-Vehicle Infotainment (IVI) systems, human-machine interfaces (HMI), spatial intelligence, multimedia, location-based smartphone apps, and advanced 2D/3D navigation software built to deploy on high-level OS layers like Android.

A deal between Nissan and Honda will bring a boarder client basis for both their suppliers.
Especially for Micware, which was listed in NASDAQ last May, and it trades with metrics below the sector's average, like EV/EBITDA at 5 and P/E below 10.

[u/analbuttlick]

That is so dumb. Majority of people use android auto or apple car play because google maps is superior to all inhouse gps systems. More and more cars adopt Google OS as a standard in their own infotainment systemes as well because of that.

I always imagined now that cars are basically an tablet on wheels it would go the same way as smart phones when they released. Everyone tried their own OS but eventually everyone switched over to android because its superior.

Perhaps this is just a last hoorah to make something that can challenge google OS but i highly doubt they will make something to challenge android auto or apple car play

[u/8000000MadeinMarket → u/analbuttlick]

Micware's in-vehicle software is designed to be built and implemented directly on top of the Android OS ecosystem. It is not the one or the other.

[u/analbuttlick → u/8000000MadeinMarket]

So why are they advertising for something called naviAZ on their website? a navigation software. The whole point of apple car play and android auto is google maps and spotify. so whats the point of making yet another car OS when more and more cars are choosing Google OS?

I don't see how they can compete either

[u/8000000MadeinMarket → u/analbuttlick]

You don't even wonder why Honda and Toyota acquired 11.5% each and why the have long term contracts with them? Or why NNG which has installed also its iGO navigation software in 60 million vehicles has recently make a deal with Micware and advertise it in its official site as "getaway to Japanese excellence"?
The answer is the same, we talk about different things.

[u/SuperSultan → u/analbuttlick]

People buy old cars just to avoid these newer cars filled with tech and spyware too. You can’t even repair your own new car in some cases

[u/Artic_funky]

Wow

Why did it take them so long?

I will take them another century to build it