Honda and Nissan initiate merger discussions, with Mitsubishi Motors expected to make a decision on whether to participate by early next year.

Honda and Nissan, Japan’s second and third-largest automakers, have started merger talks with the goal of creating the world’s third-largest automaker. The two companies announced that they had launched formal negotiations to establish a framework for their potential merger. Meanwhile, Mitsubishi Motors, Japan’s fourth-largest automaker, has announced that it will decide whether to join the potential merger early next year. The announcement was made after reports surfaced that Honda and Nissan were in talks to create a single entity. The move is seen as a response to the changing global automotive market and increasing competition from foreign rivals. The merger would create a stronger competitor in the global market, but it remains to be seen whether the deal will go through.