Honda, Nissan in merger talks

Japanese auto giants Honda and Nissan are in talks to set up a holding company, a source familiar with the matter said, a move that would allow them to share more resources amid fierce competition in the global industry.

According to Reuters, the talks would allow the two automakers to strengthen collaboration in technology at a time when companies such as Tesla and Chinese rivals are reshaping the industry.

The source, who declined to be identified due to confidentiality, said the talks aim to create an umbrella holding company that would include Nissan and Honda.

It is not yet clear whether the new holding company ultimately aims to create a full union between the two companies, but the sources said they have begun merger talks.