Once they find a common direction, Honda and Nissan will draw up a definitive agreement to merge, including a plan to transfer shares, by June 2025. If that goes through, they will seek to get plans approved by April 2026, with the merger happening later that year.

The Renault Group holds almost 36% of Nissan, but its role in the merger remains unclear. The French group said it’s considering “all options” as talks between the Japanese brands intensify. Former Nissan and Renault boss Carlos Ghosn suggests Renault might sell its shares to Honda.

Japanese automakers Honda and Nissan have announced plans to join forces, forming world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

With a 36-percent stake in Nissan, Renault appears open to a merger with Honda. But does it mean it wants to stay in the Alliance?

Here's a quick look at what a combined Honda and Nissan would mean for the companies, and for the auto industry.

Honda will not be making it easy for Nissan, however. This is not a case of Honda paying the bills to get Nissan back up to speed, as the latter will still be responsible for digg