Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

Rumors have it that Japan’s Ministry of Economy, Trade and Industry helped to influence the deal to avoid Foxconn's takeover of Nissan after METI endorsed the merger. This set off alarms for scorned ex-Nissan CEO Carlos Ghosn who is watching the unknown unfold from the sidelines.

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.