Honda and Nissan to start merger talks

Honda Motor and Nissan Motor have decided to hold talks on management integration. Mitsubishi Motors is also expected to join the talks.

Sources said the Japanese firms are aiming to finalize a deal in June. Honda and Nissan each held board meetings about the merger.

Sources said the president of the new holding company is expected to be appointed by Honda.

They add the company's internal and outside directors are also likely to be nominated by Honda. Honda and Nissan hope a merger will allow them to streamline operations and share huge development costs in EVs and autonomous driving.

Innovation in these areas has been driven by new entrants such as Tesla in the United States and BYD in China.