The Japanese car giants Honda and Nissan are planning to initiate talks on a merger – with the aim of helping them in the competition against Tesla and other electric car manufacturers, reports the Tokyo-based newspaper Nikkei.
The two companies want to operate under a single holding company and will soon sign a memorandum of understanding, according to the newspaper.
Honda and Nissan are also considering bringing Mitsubishi under the holding company to create one of the world's largest car groups. Nissan is the largest shareholder in Mitsubishi.
In March, Honda and Nissan announced that they had agreed to explore a strategic partnership in electric vehicles and other areas. Analysts then said that the aim was to catch up with Chinese competitors who are at the forefront when it comes to electric cars, and that Japanese companies have lost ground as they have focused more on hybrid vehicles.
