Two of the world’s largest automakers are reportedly looking to begin merger talks to be more competitive in the global auto market.

Japanese automakers Nissan Motor and Honda Motor “are considering operating under a holding company, and soon will sign a memorandum of understanding, according to the report. They also look to eventually bring Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, under the holding company”, reports NBC News.

In August 2024, the two companies entered into a partnership that focused on shared automotive components and software. However, neither Honda nor Nissan has confirmed that their partnership is going into merger discussions. In an email statement, Honda shared, “The reported content was not released by our company. As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths. We will inform our stakeholders of any updates at an appropriate time.”

If a merger does happen, it will reportedly be the largest one in the auto industry since 2021, when Fiat Chrysler and France-based PSA Groupe joined to form Stellantis.