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 second- and third-largest automakers hope the $50 billion deal would help them catch up with Tesla and China’s BYD in electric vehicles and advanced software.

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.

The move would bring the two struggling car companies together in a bid to reclaim market share from rising domestic brands in China, the world's largest car market.

Japanese automakers Honda Motor Co. and Nissan Motor Corp. announced Monday their intention to merge by 2026 and create the world’s third-largest car-making operation by sales.

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.

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’s $58B merger aims to reclaim cultural relevance, merging innovation with a bold comeback to become the “cool kids” of the auto industry by 2026.

Honda and Nissan have officially confirmed rumors that they're pursuing a merger, the companies wrote in a joint press release. Each would continue to operate under its own brand, but with a new joint holding company as parent.