Honda and Nissan are holding talks over the next six months to determine if the two car companies should merge, creating the world’s third-largest automaker.

Mitsubishi will also participate in the merger talks wince its alirady aligned with Nissan. Toyota and Volkswagen are the only two automakers that will be larger than the combined Japanese car builders.

With the changing car landscape that involves EVs more traditional automakers are feeling the pressure from China’s automarkets and feel the need to combine forces to stay competitive. Nissan has needed to lay off 9,000 workers and cut its output this year to remain profitable, according to a CNN report.

Source: CNN, Nissan

Image source: Nissan