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Honda and Nissan Team Up for Next-Generation OS

TOKYO - Honda Motor and Nissan Motor have entered final-stage negotiations to jointly develop an operating system that will serve as the core software for their next-generation vehicles, with an agreement targeted by the end of August.

Automakers are accelerating the development of vehicle operating systems that allow functions to be updated through applications and other software, much like smartphones.

According to people familiar with the matter, Honda and Nissan are making final arrangements to jointly develop such software as they seek to strengthen their competitiveness in the rapidly evolving automotive industry.

The two companies previously held talks on a possible management integration, but the negotiations collapsed. They have continued to consider cooperation in specific areas.

Software development requires enormous investment, and Honda and Nissan aim to improve the efficiency of their spending by sharing development costs. The partnership is also intended to help them compete with U.S. and Chinese automakers that have taken the lead in next-generation vehicle technology.

Source: TBS

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