Japanese car makers Nissan, Honda and Mitsubishi are in talks to see a merger as part of plans to produce electronic powered vehicles.
Mitsubishi, the Japanese car maker whose largest shareholder is Nissan is on board as an intelligence and electrification service provider in the merger.
Analysts say if this goes through, it is going to become one of the biggest car producer while keeping up with the global competition currently led by China with companies like Build Your Dream (BYD) and TESLA.
Merging parties are looking toppling China’s lead which, as analysts suggest is widely occasioned by their ability to produce electric powered vehicles at a competitive price compared with those currently on the market.
Reports suggest that while Toyota and Honda have attempted creating their own line of E-vehicles, they have not been able to make much headway. With this merger, they are targeting motor vehicles and the aviation sector.
Top executives of the firms have praised the move, touting its obvious potential to make the new brand reach bigger and wider markets like North America, one of Nissans largest.
While discounting suggestions by analysts that this is a plan to potentially form a cartel in the industry, they also say the pace of change in Japanese car making industry will be able to speed up by this.
