This article first appeared on GuruFocus .
Honda Motor ( NYSE:HMC ), the automobile, motorcycle and mobility manufacturer, climbed approximately 1% to $32.18 Monday after deepening its technology alliance with Nissan. The two Japanese automakers are building common electronic-control hardware and software for their next-generation vehicles.
The official agreement stretches from high-performance and zone control units to an in-vehicle operating system, middleware and vehicle-control software. The shared platform is scheduled to reach vehicles during the financial year beginning in 2029, while Mitsubishi Motors weighs whether to join the project.
Honda is buying scale without surrendering its identity. Sharing the expensive digital backbone could spread development costs across more vehicles while preserving room for brand-specific features. But 2029 is a distant finish line when BYD ( BYDDF ) and other Chinese rivals are already exporting software-rich cars. At $32.18, Honda trades 2.57% below its $33.03 GF Value, suggesting modest upsidebut hardly enough to erase the execution risk of a three-year wait.
