Honda has worked with GM in a series of collaborations that did not involve any exchange of corporate equity. In 1993, GM controlled Isuzu and signed a deal to supply its Rodeo to become Honda’s first SUV,

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.

Rumors have it that Japan’s Ministry of Economy, Trade and Industry helped to influence the deal to avoid Foxconn's takeover of Nissan after METI endorsed the merger. This set off alarms for scorned ex-Nissan CEO Carlos Ghosn who is watching the unknown unfold from the sidelines.

Japanese automakers Honda and Nissan will attempt to merge and create the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

Speculation about a potential Honda and Nissan merger began earlier this month, and the two companies confirmed the official start of talks Monday.

A prerequisite for the merger is for Nissan to complete its business turnaround, Mibe added. Honda and Nissan are the second and third largest automakers in Japan, respectively. I

Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

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.

"It's not a pragmatic deal because frankly, the synergies between the two companies are difficult to find," Ghosn told Bloomberg.

"Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future,” said Nissan Director, President, CEO, and Representati

Honda will not be making it easy for Nissan, however. This is not a case of Honda paying the bills to get Nissan back up to speed, as the latter will still be responsible for digg