Honda and Nissan begin merger talks to create third-largest carmaker

Two major Japanese automakers announced their intentions to merge Monday, aiming to create the world’s third-largest automaker in an industry facing radical change with electric vehicles and emerging Chinese automakers.

Nissan and Honda announced a memorandum of understanding that will start discussions of a merger for the two automakers to create one joint company. Another Japanese automaker, Mitsubishi, which was already in an alliance with Honda, will also be a part of the discussions.