Honda and Nissan have officially initiated merger talks, aiming to create the world’s third-largest automaker, positioning them to better compete against the growing threat from Chinese carmakers. Mitsubishi, already allied with Nissan, will also participate in the discussions. The merger, if realized, would place the combined company behind only Toyota and Volkswagen in global sales. This move comes amid the challenges of shifting to electric vehicles and increased competition from Chinese automakers. Nissan, struggling with severe financial issues since its alliance with Renault collapsed, is in desperate need of a larger partner. The deal reflects broader trends in the auto industry, where consolidation may become crucial for companies to remain competitive, especially as they face rising costs and the need for significant investment in new technologies.