Honda and Nissan plan to merge as the two Japanese firms seek to fight back against competition from the Chinese car industry. The integration would create one of the world's biggest car producers alongside Toyota,

The most important market for both Honda and Nissan is North America. Their core car models are similar, as both companies focus on sports utility vehicles. Nissan does not sell hybrid vehicles (HVs) in North America, and the business integration may enable it to put its HVs into the North American market at an early date.

The merger talks between Honda and Nissan are the latest example of companies trying to respond to the competitive threat from China.

The two major Japanese automakers are discussing a merger. Here is what to know, from the reasons why they are doing this to how it could impact you.

Talks about a possible merger of Nissan and Honda is the latest reaction as the global auto industry races to electrify prompted by China competition.

Honda and Nissan plan to merge as the two Japanese firms seek to fight back against competition from the Chinese car industry. Joining forces would create one of the world's biggest car producers alongside Toyota, Volkswagen, General Motors and Ford. And who is France's new finance minister?

They're being challenged in China and there is no plan in front of it. So I can tell you that there is panic mode inside me. So we're very in panic mode. And then it then pushes the idea that there's the economy ministry,

The embattled former executive says the Japanese government is pushing Honda into the deal for the benefit of the economy.

Honda and Nissan are exploring a merger that could reshape the global automotive landscape. According to Nikkei, the two Japanese automakers are in talks to consolidate under a new holding company, with plans to sort out shared equity stakes through a memorandum of understanding.