Honda and Nissan consider mutual production of vehicles -Kyodo By Reuters | masr356.com

TOKYO (Reuters) – Honda (NYSE:) and Nissan (OTC:) are contemplating producing vehicles in each other’s factories as half of their talks to deepen ties, information company Kyodo reported on Saturday with out citing sources.

The report added that Honda may also consider supplying hybrid vehicles to Nissan as half of the potential merger, with out mentioning the supply of the data.

Honda, Japan’s second-largest automobile firm, and Nissan, its third-largest, are in talks to deepen ties with a watch on doubtlessly organising a holding firm, in accordance with two individuals acquainted with the matter. One of the individuals stated the automakers are additionally discussing a possible merger.

A merger might create the world’s third-largest auto group by car gross sales behind Toyota (NYSE:) and Volkswagen (ETR:), with an annual output of 7.4 million vehicles.

The 2 automakers cast a strategic partnership in March to cooperate in electrical car improvement, however Nissan has confronted ongoing monetary and strategic troubles in current months.