Nissan, Honda announce plans to merge, creating world's No. 3 automaker

Japanese automakers Nissan and Honda have announced plans on a merger that would catapult them to a top position in an industry in the midst of tectonic shifts as it transitions away from reliance on fossil fuels. The two companies said they signed an agreement on integrating their businesses on Monday. Smaller Nissan alliance member Mitsubishi Motors agreed to join the talks. News of a possible merger surfaced earlier this month, with reports saying that the talks on closer collaboration partly were driven by aspirations of Taiwan iPhone maker Foxconn to tie up with Nissan. Japanese automakers face a strong challenge from their Chinese rivals and Tesla as they make inroads into markets at home and abroad.