Mitsubishi Motors Corp. is considering not joining the planned merger between Nissan Motor Co. and Honda Motor Co., instead focusing on strengthening cooperation with the two larger firms, a source close to the matter said Friday.

Mitsubishi Motors, already a partner of Nissan, apparently fears losing management control if it joins the Nissan-Honda merger under a holding company, the source said.

"At this stage, we are considering various possibilities, and we have not decided on a (specific) direction," Mitsubishi said in a statement Friday.

Nissan and Honda announced late last year they would launch talks to merge under a holding company in 2026, potentially creating the world's third-largest auto group. They said at the time that Mitsubishi Motors would decide by the end of January whether to join the merger.

Mitsubishi, in which Nissan is the top shareholder, has strength in Southeastern Asian markets such as Indonesia and the Philippines.

Honda and Nissan, Japan's second- and third-largest carmakers by volume, respectively, are seeking to better compete with U.S. and Chinese electric vehicle manufacturers through the merger.

They aim to conclude negotiations in June 2025. Each company would continue operating under its own brand within the holding company, which would be listed in August 2026.

==Kyodo

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