Nissan said Wednesday that the two carmakers had been “exploring various possibilities for future collaboration” for months. Honda chief executive Toshihiro Mibe said his company is considering a merger or joint ventures with Nissan that could put them in a better position to take on competitors.

Nissan and Honda are reportedly engaged in a merger talks. The two companies have sold more than 1.7 million vehicles in the US so far this year.

Honda and Nissan are reportedly in discussions about a potential merger between the Japanese automakers, and the rumors do not come as a surprise to industry experts.