It's really happening: Honda, Nissan, and Mitsubishi are joining forces to operate together under a single holding company, in a bid to stave off fierce competition around the world.

Honda Motor and Nissan Motor have agreed to start full-scale talks on management integration. The two Japanese automakers are aiming to finalize a deal in June 2025. Honda and Nissan announced the basic agreement on Monday, NHK reported. They are aiming to set up a holding company for listing in August 2026. The resulting group would be the world's third largest in terms of vehicle units sold, following Toyota and Volkswagen Groups. While maintaining both brands, the two companies will cut costs by sharing vehicle platforms while accelerating cooperation to come up with hybrid and electric cars that meet the needs of the markets. Honda and Nissan also aim to integrate research and development functions to jointly develop software and electric vehicles in order to multiply their efforts.

The Japanese firms have signed a memorandum of understanding to bring the two companies together through a joint holding company, creating the world's third largest automotive manufacturer

Nissan and Honda will attempt a merger that would create the third-largest automaker. Here's what that could mean.

Nissan and Honda will attempt a merger that would create the third-largest automaker. Here's what that could mean.

Dec. 23 (UPI) -- Japan's Honda and Nissan said Monday they had embarked on formal merger talks that would create the third-largest car manufacturer globally with sales of as much as $191.4 billion and more than $19 billion profit.

The integration of Honda and Nissan will create the third-largest carmaker in the world in terms of volume.