The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

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.

Japanese car giants Honda and Nissan are working out the details of a major merger that could create the world's third-largest automaker, as the companies