The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

Both companies are grappling with intense global competition in the electric vehicle market from the likes of Tesla and China’s BYD.

The Japanese car giants say the proposed merger would give them the scale to better compete on the global market.

New York – Stocks wavered in morning trading on Wall Street Monday at the start of a holiday-shortened week. The S&P 500 fell 0.1%. A handful of technology companies helped cushion the widespread losses. The Dow Jones Industrial Average slipped 222 points, or 0.5% as of 9:55 a.m. Eastern time. The tech-heavy Nasdaq composite rose 0.3%.

Honda and Nissan have announced the two companies are in merger talks, with the intention of becoming one automaker in 2026 – the third largest in the worl

Honda and Nissan have started talks toward a potential merger, they said on Monday (December 23), a historic pivot for Japan's auto industry that underlines the threat Chinese EV makers now pose to some of the world's best known car makers.