Honda’s CEO struggles to explain why the merger is happening, analysts remain skeptical, and Foxconn waits in the wings.

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.

Japanese automakers Honda and Nissan will attempt to merge and create the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels

Speculation about a potential Honda and Nissan merger began earlier this month, and the two companies confirmed the official start of talks Monday.

The potential merger could help boost the auto companies production of electric vehicles amid growing changes in the car industry.

Honda and Nissan said they had signed a memorandum of understanding and that Mitsubishi also had agreed to join the talks.

Honda Motor Co. and Nissan Motor Co. are exploring a potential merger, which would create a singular rival to Toyota Motor Corp. in Japan and better position the combined company to face competitive challenges around the world.

This merger could create the world’s third-largest automaker, with combined resources to dominate the EV market. Honda and Nissan hope to outpace rising Chinese brands like BYD and Nio.

TWO days before Christmas, a triple car-company press conference was held for the global audience. Honda, Nissan, and — on the side — Mitsubishi went online to announce a move that was somewhat shocking but not entirely surprising.

BENGALURU: Honda and Nissan expect big benefits from their potential merger to create the world’s third-largest auto group but intense competition in the segment raises questions about whether they can make it work in time.