Honda and Nissan could Possibly Merge

Honda and Nissan have formally agreed to hold talks over the next six months on a possible merger. The deal would create the world’s third-largest automaker and give them more resources to compete with a growing threat from Chinese carmakers.

A third, smaller Japanese automaker, Mitsubishi, which is already in an alliance with Nissan, will also participate in the talks. If the combined company is created, it would trail only Toyota (TM) and Volkswagen in global sales.