Investing.com — Honda (NYSE:) Motor and Nissan (OTC:) Motor are set to interact in discussions concerning a possible merger, aiming to pool assets to strengthen their place within the electrical car market, in keeping with on Wednesday.
The 2 Japanese automakers are considering the opportunity of working beneath a shared holding firm, the report mentioned, including {that a} memorandum of understanding, which can formally provoke these negotiations, is predicted to be signed shortly.
Particulars concerning their respective stakes within the newly proposed entity, together with different specifics, shall be decided at a later stage, the report mentioned.
This transfer signifies a strategic response to the fast-paced evolution of the auto trade, significantly the electrical car phase.
By becoming a member of forces, Honda and Nissan intention to higher compete with Tesla (NASDAQ:) and Chinese language electrical car producers, who at present maintain a major market share.
The choice to merge assets comes as automakers worldwide are grappling with the shift in the direction of electrical and autonomous automobiles, a pattern that has been accelerated by rising environmental issues and developments in expertise.
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