Japanese automakers Honda Motor and Nissan Motor are reportedly entering merger talks to help them compete against Tesla and other electric vehicle makers, according to the Nikkei financial newspaper.The two firms are considering operating under a single holding company, and are expected to sign a memorandum of understanding for the new entity, according to the Tokyo-based Nikkei.
In March, Japan's number two and three automakers, after rival Toyota, deepened ties when they agreed to explore a strategic partnership on electric vehicles.Analysts characterized the move as one that is aimed at helping the automakers catch up with Chinese competitors, including BYD, which have captured more market share, while Japanese firms have lost ground by focusing more on hybrid vehicles.
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