Japanese carmakers Honda, Nissan in preliminary merger talks: reports [Video]

Japanese auto giants Honda and Nissan are in preliminary merger talks to help them compete against Tesla and Chinese electric vehicle makers, media reports said Wednesday.

Separately Bloomberg reported that Taiwanese tech giant Foxconn — officially known as Hon Hai Precision Industry — has approached Nissan to take a controlling stake.

Shares in Nissan soared as much as 24 percent, while Honda dipped more than two percent. Mitsubishi Motors — of which Nissan is the top shareholder — gained 13 percent.

Japan’s number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EVs.

“We are discussing possibilities for cooperation… in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,” a Honda spokesman told AFP on Wednesday.

Nissan said: “The content of the report is not something that has been announced …