Nissan, Honda to merge to create third-largest automaker WSOC TV [Video]

There may be a little less competition in the auto industry as Nissan and Honda agree to discuss a merger.

The two companies signed a memorandum of understanding on Monday, The Associated Press reported. The impending merger will allow them to standardize vehicles and increase production, The New York Times reported.

Honda and Nissan will create a joint holding company with Honda taking the lead. The merger agreement is slated to be in place by June and the deal finalized, with the company being listed on the Tokyo Stock Exchange by August 2026.

Mitsubishi Motors, an alliance member of Nissan, will be part of the discussions.

Honda is Japan’s second-largest automaker while Nissan is third, The New York Times reported.

The companies hope the merger will help them compete in the industry that has evolved into electric cars and autonomous driving. The merger will allow them to work together on research and development, Honda’s chief executive Toshihiro Mibe …