Japanese car huges, Honda and Nissan, have proclaimd structures to combine.
That would produce them the third bigst car producer by sales.
The two companies said they had signed a memorandum of empathetic, which would also comprise the petiteer Nissan Alliance member, Mitsubishi Motors, in the talks on integration.
Japan’s car producers have struggled to suit their huge rivals in electric vehicles (EVs) and are trying to cut costs.
If the combiner is finalised it could result in a company worth more than 50 billion dollars (£39.77bn) based on the labelet capitalisation of all three car producers.