Tokyo — As the industry experiences significant changes in its shift away from fossil fuels, Japanese automakers Honda and Nissan.
Have announced plans to work toward a combination that would create the third-largest carmaker by sales in the world.
The two firms announced Monday that they had inked a memorandum of understanding and that Mitsubishi Motors Corp.
A smaller member of the Nissan alliance, had also consented to participate in the integration negotiations.
As newcomers like China’s BYD and EV market leader Tesla eat up market share, Japanese automakers are attempting to reduce expenses and make up for lost time after falling behind their major competitors in the electric vehicle space.
Honda and Nissan will try to consolidate their activities under a joint holding company, according to Toshihiro Mibe, president of Honda.
