Nissan and Honda reportedly pursuing merger amid "hard new realities"

Driving the news: Honda and Nissan are weighing a deal in which they would both be placed into a holding company, Japanese newspaper Nikkei reported.

• The two companies would be "joining their resources to better compete against Tesla and Chinese electric vehicle makers in a rapidly changing automobile industry," according to Nikkei.
• The Wall Street Journal confirmed the talks.

What they're saying: Representatives of Nissan and Honda issued nearly identical statements in response to Axios' request for comment.

• Neither company denied the news, saying that they had not announced anything but that they are "exploring various possibilities for future collaboration," as first announced in March.
• The companies are already working together on EV technologies including batteries.

Zoom in: Such a deal could be aimed at stopping the bleeding at Nissan, which recently announced 9,000 global job cuts and plans to shed a fifth of its global production capacity.

• Nissan described the cuts as "urgent measures" in a bid to return to profitability.
• Nissan has struggled to regain momentum following the dramatic ouster of Carlos Ghosn, who became an international fugitive after his escape from custody in Japan five years ago.

Honda's troubles are not as immediate as Nissan's, but the company faces the same competition that's confronting Nissan and the rest of the global auto industry in China.

• Known for its high-quality production and resistance to discounts, Honda recently announced plans to collaborate with General Motors on vehicle development.

The bottom line: "This marks the end of an era," Dunne Insights auto analyst Michael Dunne said on X. "A forever fiercely independent Honda bends to hard new realities. Not because they want to but because they have to."