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.

Japanese automakers Nissan and Honda have announced plans to work toward a merger that would catapult them to a top position in an industry in the midst of tectonic shifts as it transitions away from its reliance on fossil fuels.

Japanese automakers Nissan and Honda say they plan to share components for electric vehicles like batteries and jointly research software for autonomous driving.

Honda is gearing up for an electrification shift in North America with two models developed with General Motors going on sale next year, and a bigger EV with a new platform in 2025, a year earlier than initially announced.

Honda is investing $40 billion over the next decade in research, especially to realize a major shift to ecological electric vehicles.

Japanese automaker Honda said Friday, Feb. 19, 2021, Mibe replaces Hachigo effective April 1, and subject to shareholders approval at a meeting in June. (Honda Motor Co. via AP)TOKYO – Toshihiro Mibe, a research expert tapped to be president of Japanese automaker Honda on Friday, promised to steer the company toward new growth by focusing on ecological models and safety technology. Honda Motor Co. said Mibe replaces Takahiro Hachigo effective April 1, and subject to shareholders’ approval at a meeting in June. Honda recently reported growth in fiscal third quarter profit and raised its annual profit forecast to 465 billion yen ($4.4 billion), up from the previous projection for a 390 billion yen ($3.7 billion) profit. The latest forecast is also better than the 456 billion yen profit Honda earned the previous fiscal year, although Honda warned the outlook remains uncertain because the impact from COVID-29 was still unclear.