Latest news with #softwaredefinedvehicles
Yahoo
5 days ago
- Automotive
- Yahoo
Honda & Nissan in Discussion to Co-Develop Advanced Auto Software
Honda Motor Co., Ltd. HMC and Nissan Motor Co., Ltd. NSANY are in discussions to jointly develop and share a foundational software platform for advanced vehicle control systems, per sources. The move is part of their effort to catch up with leading U.S. and Chinese automakers in the growing field of software-defined vehicles (SDVs).The two companies aim to introduce vehicles utilizing the new software in the latter half of the decade. As SDVs become more prominent in the global automotive landscape, they require massive data inputs for both development and ongoing operation, making strategic collaboration crucial for accelerating innovation and reducing and several Chinese automakers currently lead in the SDV space, while Toyota and Mazda are also considering adopting shared software strategies. Honda and Nissan's ongoing discussions mark the latest attempt at collaboration, following the end of previous merger talks in February after Nissan declined to become a Honda initiating a feasibility study in March 2024, both automakers have been evaluating potential collaborations in software development and EV charging infrastructure. However, Honda has indicated that it still plans to launch electric vehicles equipped with its proprietary software beginning in separate news, Nissan may begin manufacturing pickup trucks for Honda at its U.S. plants under a proposed strategic agreement. This would allow Honda to diversify its U.S. vehicle lineup, where it currently has limited presence in the pickup segment and mitigate the financial impact of new tariffs. For Nissan, the deal could improve factory utilization, which remains below break-even levels, and help offset declining sales due to its lack of competitive hybrid two companies are currently discussing this potential partnership. Both automakers view the United States as a crucial market, though recent tariff increases on Japanese imports have intensified pressure. The levies are projected to reduce Honda's operating profit by ¥650 billion and Nissan's by up to ¥450 billion in fiscal 2025. A manufacturing agreement between the two could enhance profitability for both firms. HMC & NSANY carry a Zacks Rank #4 (Sell) each at better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY and Aisin Corporation ASEKY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for GELYY's fiscal 2025 sales implies year-over-year growth of 76.25%. EPS estimates for fiscal 2025 and 2026 have improved 27 cents and 47 cents, respectively, in the past seven Zacks Consensus Estimate for ASEKY's fiscal 2026 sales and earnings implies year-over-year growth of 7.32% and 58.89%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Nissan Motor Co. (NSANY) : Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Forbes
6 days ago
- Automotive
- Forbes
Preparing For The Software-Defined Future Of Commercial Vehicles
Yu Fang is CTO, CPO & Co-Founder at Sonatus. In the fast-paced and rapidly transforming landscape of commercial mobility, one thing is increasingly clear: the future of commercial vehicles will likely be software-defined. Regulatory mandates for electrification, booming e-commerce and rising expectations around mobility services are reshaping commercial vehicle demands. This has led more original equipment manufacturers (OEMs) to transition from traditional static vehicle architectures to software-defined vehicles (SDVs). The Drawbacks Of Traditional Vehicle Architectures Today's commercial vehicle market is thriving, projected to grow significantly in sectors like light commercial vehicles (LCVs), expected to reach over $857 billion by 2033. Middle-mile delivery vehicles, such as box trucks, are also experiencing substantial growth, expected to expand from $113 billion in 2024 to approximately $183 billion by 2029. This expansion underscores the need for manufacturers to adapt swiftly to meet evolving market demands. Yet, amid these promising opportunities, significant challenges persist. Fleet operators and manufacturers alike face increased complexity from diverse customer needs. Delivery fleets, for instance, demand specialized requirements such as climate-controlled compartments for perishable goods, while passenger vans require enhanced safety and integrated comfort features tailored to their unique operational scenarios. Additionally, fleet operators require digital tools, increasingly powered by AI, to optimize vehicle maintenance, enhance driver performance and increase operational efficiency. While traditional vehicle architectures—often characterized by tightly coupled hardware and software—have served the industry well, they are increasingly challenged by dynamic and rapidly evolving demands. Software-defined vehicle architectures offer one response to these pressures, providing a more flexible foundation for updates, services and innovation. Making The Shift To Software-Defined Vehicles The shift toward SDVs is not just a trend. For many commercial vehicle manufacturers, it has become a strategic imperative. At the core of SDV architecture is the decoupling of hardware and software, enabling centralized computing and over-the-air (OTA) updates. This transition can unlock a range of operational and commercial advantages uniquely suited to commercial fleets. However, making the transition is not without challenges for OEMs and suppliers. Incumbent OEMs must contend with legacy vehicle architectures, hardware-centric development methodologies and production processes, even as they transition to software-centric paradigms. Traditional product cycles are lengthy and often limited by the ability to secure the necessary hardware before software development can commence. In contrast, decoupling software from hardware in SDVs enables the development process to 'shift left,' allowing OEM engineers to work on next-generation vehicle functionality in advance of vehicle systems being in place. The other challenge incumbent OEMs face is organizational. Aside from having to hire software talent rather than mechanical and mechatronic engineers, OEMs have long operated in functional silos that come together only in the final stages of development and production. In a software-centric automotive world, there needs to be strong cross-functional collaboration right from the start to achieve the holistic vehicle innovations promised by the move towards SDVs. Once this transition is successfully made, it helps unlock a range of operational and commercial advantages uniquely suited to commercial fleets. For instance, they enable faster deployment of new features—such as optimized routing, advanced driver assistance or fuel-efficiency modes—without requiring recalls, aligning with fleet expectations for continuous digital upgrades. OEMs can also tap into new revenue streams through software subscriptions, usage-based pricing and performance upgrades that extend beyond the initial sale. Centralized data and diagnostics support predictive maintenance to minimize costly downtime, and a software-first approach simplifies development across multiple vehicle models, reducing complexity and accelerating time to market. For commercial vehicle OEMs, transitioning to an SDV architecture isn't just about technology—it's about building a future-proof business model that aligns with the demands of modern fleets and unlocks long-term value. The Three Pillars Of A Successful SDV Strategy A successful SDV approach relies on three core technological advancements: modular applications and services, software-configurable vehicle networks and dynamic data management and collection. The resulting flexibility allows OEMs to swiftly and cost-effectively adapt vehicles for a multitude of use cases. Software-configurable vehicle networks transform vehicle architectures by enabling real-time adaptability of electrical and electronic (E/E) systems. The flexibility provided by Ethernet-based networks allows OEMs to add, modify or remove vehicle modules and sensors, accelerating the integration of the latest technologies. This helps reduce wiring complexity, simplifying updates and repairs and improving overall fleet efficiency. Modular applications, containers and microservices allow rapid cloud-native development and seamless deployment of features tailored to customer requirements. Service-oriented architectures (SOAs) facilitate cross-domain integration, tying together various vehicle functions—from powertrain and chassis to infotainment and advanced driver assistance systems (ADAS)—into cohesive, dynamic solutions. This capability enables OEMs to continuously provide post-purchase upgrades, enhancing vehicle functionality and driving additional revenue streams. Dynamic data management further empowers manufacturers with robust, event-driven data collection strategies. OEMs can leverage granular vehicle data to implement predictive maintenance, optimize vehicle performance and enhance safety protocols. Event-driven collection methodologies enable intelligent data gathering precisely when certain conditions occur, streamlining storage requirements and improving data utility. Furthermore, SDVs streamline aftermarket integrations, which are traditionally costly and complex. By enabling plug-and-play compatibility with third-party telematics devices, cargo sensors and auxiliary systems, OEMs can reclaim control of the vehicle ecosystem and capture additional value typically ceded to aftermarket providers. Closing Thoughts While the shift toward software-defined architectures can present benefits, it requires a well-planned strategy. OEMs that successfully approach this transition will be better positioned to secure a competitive advantage, delivering vehicles capable of dynamically adapting to future demands while maximizing current market opportunities. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
