Honda and Nissan, two of Japan’s largest automakers, are reportedly in discussions to establish a holding company, according to a person familiar with the matter. The move is seen as a strategic partnership aimed at strengthening their positions in the global market.

While details of the proposed holding company are scarce, industry insiders speculate that it could enable Honda and Nissan to share resources, reduce costs, and enhance their competitiveness in the face of increasing competition from electric vehicle (EV) manufacturers.

The partnership would bring together two of Japan’s most iconic automotive brands, with Honda known for its Civic and Accord models, and Nissan famous for its Altima and Leaf EV. A holding company structure would allow both companies to maintain their separate identities while collaborating on key areas such as research and development, procurement, and manufacturing.

The talks come as the global automotive industry is undergoing significant changes, with the shift towards electrification, autonomous driving, and connectivity driving innovation and investment. By pooling their resources and expertise, Honda and Nissan may be better positioned to navigate these challenges and capitalize on emerging opportunities.