Deal would create No. 3 global auto group after Toyota, Volkswagen
This is not 39;rescue of Nissan39;, Honda CEO Mibe says
Mitsubishi Motors to judge whether to join by endJanuary
Honda, Nissan will list holding company shares in Aug 2026

TOKYO, Dec 23 Reuters Honda and Nissan are in talks to merge by 2026, they said on Monday, a historic pivot for Japan39;s auto industry that underlines the threat Chinese EV makers now pose to the world39;s longdominant legacy car makers.

The tieup would create the world39;s thirdlargest auto group by vehicle sales after Toyota and Volkswagen.

It would also give the two companies scale and a chance to share resources in the face of intense competition from Tesla and more nimble Chinese rivals, such as BYD.

The merger of Honda, Japan39;s secondlargest automaker, with Nissan, its No. 3, would be the biggest reshaping in the global auto industry since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis in a 52billion deal.

Smaller Mitsubishi Motors, in which Nissan is top shareholder, was also considering joining and would make a decision by the end of January, the companies said.

The chief executives of all three held a joint press conference in Tokyo.

The rise of Chinese automakers and new players has changed the car industry quite a lot, said Honda CEO Toshihiro Mibe, citing technological trends of electrification and autonomous driving.

We have to build up capabilities to fight with them by 2030, otherwise…