Honda and Nissan they are reportedly preparing to discuss a merger. Japanese edition Nikkei he said The two automakers plan to sign a memorandum of understanding to list stakes in a new holding company for the consolidated rivals.

The potential merger would combine the assets of Japan's second- and third-largest automakers, giving them a better chance of competing with the country's market leader, Toyota. Bloomberg adds will make them better off Tesla and Chinese EV manufacturers. Nikkei says Mitsubishi may join the talks later.

Honda and Nissan earlier this year he said they will work together on software, batteries and other EV components. This "merge and compete" alliance was created after Toyota acquired the shares. Subaru, Suzuki and Mazda. With today's news that the pair are ready to take the next step, the landscape is shifting towards fewer (but bigger) heritage automakers competing for customers.

The companies have confirmed that they are in talks The New York Times. "As announced in March of this year, Honda and Nissan are exploring various opportunities for future cooperation, leveraging each other's strengths," they told the publication. "We will inform our interested parties about any updates at the appropriate time."

Bloomberg also informed On Tuesday, Honda is ramping up production of hybrid vehicles demand for electric/gas vehicles remains high Outside of China. The automaker aims to double annual hybrid sales by 2030. "The goal is still to be carbon neutral by 2050, but demand for hybrids will remain high in the near future," Honda CEO Katsuto Hayashi said on Sunday. "We see most of that growth happening in North America."

Speaking of North America, it is reported that the newly elected President of the United States, Donald Trump, is planning this Reverse President Biden's EV policies. His transition team is said to have recommended ending government support for electric cars and charging stations and instead blocking imports of cars, components and battery materials from China. There are climate scientists warned that switching from gas-powered cars to electric cars is necessary to reduce carbon emissions the most disastrous predictions for our planet.

Update, December 17, 2024, 8:46 PM ET: This story has been updated to include a statement from the companies The New York Times.