Honda and Nissan announce plans to merge

Tokyo — Japanese automakers Honda and Nissan have announced plans to join forces, forming world's third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses.

"We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base," Nissan's CEO Makoto Uchida said in a statement.