After kicking off discussions on Monday, Honda and Nissan said they plan to provide more details on Mitsubishi’s involvement around the end of January 2025. The EV merger is expected to be official by August 2026.

Nissan and Honda face increased pressure to compete in the EV market, with sales decreasing across China and the U.S. as Tesla and Chinese automaker BYD have rapidly expanded their production and sales growth, Nikkei reported. Shares of Nissan and Honda rose by 8% and 1.5%, respectively, following the report.

Rumors have it that Japan’s Ministry of Economy, Trade and Industry helped to influence the deal to avoid Foxconn's takeover of Nissan after METI endorsed the merger. This set off alarms for scorned ex-Nissan CEO Carlos Ghosn who is watching the unknown unfold from the sidelines.