the two automakers plan to sign a memorandum of understanding to sort out shared equity stakes in a new holding company for the consolidated rivals.
The potential merger would combine the assets of Japan’s second- and third-biggest automakers, giving them a better shot of competing with the nation’s market leader,they would work together on software development, batteries and other EV components. That “combine-and-compete” alliance followed Toyota’s acquisition of stakes in. With today’s news that the pair are ready to take the next step, the landscape is clearly heading toward fewer legacy automakers competing for customers.
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