Japan's Honda and Nissan to begin merger talks, report says

Japanese automakers Honda Motor and Nissan Motor are reportedly entering merger talks to help them compete against Tesla and other electric vehicle makers, according to the Nikkei financial newspaper.

The two firms are considering operating under a single holding company, and are expected to sign a memorandum of understanding for the new entity, according to the Tokyo-based Nikkei.

The paper also reports that Honda and Nissan are considering bringing in Mitsubishi Motors, of which Nissan is the top shareholder, under the holding company to create one of the world's largest auto groups.