HONDA MOTOR CO LTD-SPONS ADR (HMC)

Honda and Nissan are considering producing vehicles in one another's factories as part of their plan to deepen ties and potentially merge.

Honda and Nissan are considering producing vehicles in one another's factories as part of their talks to deepen ties, news agency Kyodo reported on Saturday without citing sources. The report added that Honda will also consider supplying hybrid vehicles to Nissan as part of the potential merger, without mentioning the source of the information. Honda, Japan's second-largest car company, and Nissan, its third-largest, are in talks to deepen ties with an eye on potentially setting up a holding company, according to two people familiar with the matter.

Nissan Motor Co.’s discussions about a potential deal with Honda Motor Co. indicate the former is in “panic mode,” according to Carlos Ghosn, the ex-chairman of the struggling Japanese automaker.

Taiwan's Foxconn is pausing its interest in Nissan Motor as the Japanese automaker explores a potential merger with Honda Motor, Bloomberg News reported on Friday, citing people familiar with the matter. Foxconn's decision follows a delegation's meeting with Nissan's top shareholder, Renault, in France, the report said.

Hon Hai Precision Industry Co., the Taiwan-based manufacturer of iPhones known as Foxconn, is putting its interest in pursuing Nissan Motor Co. on hold while the Japanese automaker is in negotiations for a potential merger with Honda Motor Co., according to a person familiar with the matter.