Two household brands in the car industry, Honda and Nissan, are reported to be in talks to merge with each other, Nikkei reported on Wednesday.
The merger would incorporate Mitsubishi Motors, as Nissan is the major shareholder in the car producer; together, the three would be the third-largest car making group in the world, with combined sales of over eight million vehicles.
The reason for the merger is said to combine forces to be competitive against Tesla and Chinese electric vehicle (EV) makers.
Honda and Nissan have been in official cooperation talks since March this year, and entered into a strategic partnership that includes Mitsubishi Motors in August, to "jointly discuss discuss a framework for further intelligence and electrification of automobiles."
EV sales worldwide have surged in recent times, but Honda has been slow to ride the transport electrification wave. Both Honda and Nissan have struggled to meet sales targets in key markets around the world, and been forced to cut production capacity and workforces.
In New Zealand, Nissan recently released the full-EV Ariya, after a delay in the car's market introduction in the country.
Nissan has been an EV pioneer with its well-known LEAF vehicle, which has been produced since 2010.
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