Honda and Nissan announce plans to merge as the Japanese car giants struggle to take on rivals in electric vehicles.
According to foreign media, this would make them the third largest carmaker by sales, behind Toyota Motor Corp and Volkswagen AG.
The two companies said they had signed a memorandum of understanding, which would also include smaller Nissan Alliance member Mitsubishi Motors in integration talks.
Japanese automakers have struggled to catch up with their big rivals in electric vehicles (EVs) and are scrambling to cut costs.
If the merger is finalised, it could result in a company worth more than $50bn (£39.77bn) based on the market capitalization of the three carmakers.
Honda would initially lead the new management, which would maintain the principles and brands of each company, Honda president Toshihiro Mibe said.
The goal is for the deal to be completed by August 2026, he added, but said there was a chance it would not go ahead, writes A2 CNN. (A2 Televizion)
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