To lead the transformation of mobility, we have come to think that we need something more forceful than mere cooperation in some specific fields, argued Honda CEO Toshihiro Mibe at a press conference.

He stressed that “a merger would create synergies in all kinds of fields” to the benefit of both companies.

The memorandum of understanding, signed on Monday, contemplates that the smallest member of the Nissan alliance, Mitsubishi Motors, will also enter the talks in January of next year.

“We anticipate that if this integration materializes, we will be able to offer even greater value to a broader customer base,” said Nissan CEO Makoto Uchida in a statement.

At a regular government briefing, Chief Cabinet Secretary Yoshimasa Hayashi said he would not comment on details of automakers’ plans, but defended the need to remain competitive in a rapidly changing market.

“As the business environment surrounding the auto industry changes greatly, with competition in storage batteries and software becoming increasingly important, we expect necessary measures to be taken to survive international competition,” he said.

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