Japan's Honda and Nissan push for merger..."If you are successful, you will be third in the world".

Japan's Honda and Nissan Motor Co., the world's seventh and eighth-largest automakers, are seeking to merge, according to NHK and other Japanese media.

Japanese media said the two companies will soon sign an MOU to discuss details such as the ratio of consolidation of holding companies.

However, Honda, Nissan, and Mitsubishi all said, "No decision has been made at this time," regarding reports of the merger.

Honda President Toshihiro Mibe met with reporters on the 18th local time and said, "We are reviewing it, including collaboration, but nothing has been decided yet and no official announcement has been made," Japanese media said.

If the merger is completed, it will surpass Hyundai Motor Group, which sold 7.3 million units, to become the world's third-largest company in terms of sales.

As of last year, Honda sold 3.98 million finished cars in the world, while Nissan, the world's seventh-largest, sold 3.37 million units, ranking eighth in the world, and last year's global sales reached 7.35 million units.

Honda and Nissan are pushing for a merger because the automotive industry is undergoing a revolution from internal combustion locomotives to electric vehicles.

Nissan is not only struggling in the Chinese market, but also has been slow to develop new cars, so sales have been sluggish as it has not been able to put hybrid cars in the U.S.

Nissan earlier announced a restructuring plan last month that would cut 20% of its global production capacity and 9,000 employees due to weak earnings.

"A merger could ease Nissan's financial woes in the short term," an auto industry expert told Bloomberg News.