Honda and Nissan seek to survive in a rapidly changing business environment by uniting their technological expertise and business resources. (Source photos by Reuters)

Nikkei staff writers

TOKYO — Honda Motor and Nissan Motor will enter negotiations toward a merger, Nikkei has learned, joining their resources to better compete against Tesla and Chinese electric vehicle makers in a rapidly changing automobile industry.

Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding, sources close to the matter said. Their respective stakes in the new entity, as well as other details, will be decided later.