Japanese automakers Honda and Nissan are pursuing a merger to form the world’s third-largest automaker, with plans for a joint holding company by August 2026. The companies aim to integrate operations to enhance competitiveness against growing Chinese automakers and adapt to a market shift towards electric vehicles. Mitsubishi Motors will also participate in the talks. Despite Nissan's recent struggles, including job cuts and production reductions, both companies believe the merger could create significant market value. Discussions are set to conclude in June 2025.