Honda and Nissan, Japan’s second- and third-largest automakers, are holding merger talks to create a structure that would enable them to better withstand competition from Tesla and Chinese EV rivals.
The talks aim to set up an umbrella holding company and not necessarily merge the two companies together.
The partnership may also involve Mitsubishi, in which Nissan has a 24% stake.
The collaborative efforts between Honda and Nissan focus on technology for electric vehicles, including components and software.