Summary
Nissan and Honda are in early talks about a potential merger to strengthen their position against rivals like Toyota and Tesla.
A holding company structure, including possible involvement from Mitsubishi Motors, is being considered.
The deal could be announced by December 23, with Nissan's stock rising and Honda’s stock falling amid the discussions.
In a significant move to boost their competitive edge, Nissan and Honda are in early-stage discussions about a possible merger. The aim is to form a unified force capable of competing with global automotive giants like Toyota and the increasingly influential electric vehicle (EV) makers such as Tesla. The merger talks come at a time when the automotive industry is rapidly transforming, with EVs becoming central to future growth.