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

Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition from China raises questions about whether they can make it work in time.

Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

Japan's Honda and Nissan said Monday they had embarked on formal merger talks that would create the third-largest car manufacturer globally with sales of as much as $191.4 billion and more than $19 billion profit.

Honda's shares went up by as much 17% when local markets opened on Tuesday.

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.

Nissan will be the victim of cost-cutting “carnage” if it combines forces with Japanese peer Honda, former Nissan CEO Carlos Ghosn told CNBC on Tuesday.

SIGN UP for TheStreet’s FREE Daily newsletter 💰💸 While his tenure also brought about landmark products like the all-electric Nissan Leaf and the Nissan GT-R supercar; his tenure with the automaker,

As the auto industry braces for a potential game-changer, the Honda-Nissan merger talks have set the stage for one of the most significant industry shifts in years. Auto expert Nik Miles joins FOX6 WakeUp with in-depth analysis on this developing story.

Key Takeaways Moody's gave a positive review of the potential merger of Honda and Nissan.Analyst Dean Enjo wrote that the deal would be "credit positive" if done correctly.Former Nissan CEO Carlos Ghosn warned Nissan would face "carnage" if the combination went through.

Honda, which earlier this week sketched out plans for a deal that amounts to an acquisition of Nissan, sold 3.43 million cars globally in the first 11 months of 2024. Nissan said it sold just over 3 million.