Nissan and Honda have announced plans to merge by 2026 in a seismic shift for the Japanese auto industry. The two carmakers signed a memorandum of understanding that allows them to continue discussions about integration via a joint holding company,

Japanese automakers Honda and Nissan will attempt to merge and create the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels

Honda and Nissan face a litany of difficult decisions about their competing vehicles and overlapping U.S. manufacturing jobs if they move forward with a merger. Why it matters: A combination of Honda and Nissan — formerly fierce competitors — would create the world's third-largest automaker by vehicle sales behind Toyota and Volkswagen.