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Nissan and Honda are negotiating a merger that would also include Mitsubishi, aiming to create the world's third-largest automotive manufacturer. This move, primarily defensive against Chinese competition and the transition to electric vehicles, seeks to reduce costs and enhance profitability. If finalized by 2025, the agreement would form a giant with over 300,000 employees and revenues exceeding $180 billion. Market reactions have been positive, although uncertainties remain regarding Renault's role as Nissan's current majority shareholder.