TOKYO, Dec 23 (Reuters) - Honda ( HMC ) and Nissan ( NSANF )

are expected on Monday to announce the start of

business integration talks, according to Japanese media reports,

as the automakers look to survive a rapidly changing industry

landscape.

The two automakers will likely host board meetings on Monday

about the talks and later hold a joint press conference, where

Nissan's ( NSANF ) alliance partner Mitsubishi Motors ( MMTOF ) is also

expected to attend, the reports said.

A merger of the three Japanese brands would create the

world's No. 3 auto group by vehicle sales after Toyota ( TM )

and Volkswagen, in what would be the biggest

industry-reshaping deal since the 2021 formation of Stellantis ( STLA )

.

Honda ( HMC ) and Nissan ( NSANF ) have been exploring ways to bolster their

partnership, including setting up a joint holding company, as

they face growing challenges from Tesla and Chinese

rivals, Reuters reported last week. Nissan ( NSANF ) last month announced

a plan to cut 9,000 jobs and 20% of its global production

capacity after its sales plunged in its key China and U.S.

markets.

Forms of collaboration being discussed also include Honda's ( HMC )

supply of hybrid vehicles to Nissan ( NSANF ) and the joint use of

Nissan's ( NSANF ) car assembly factory in Britain, Kyodo News reported on

Saturday.

French automaker Renault, Nissan's ( NSANF ) largest

shareholder, is open in principle to a deal and would examine

all the implications of a tie-up, sources have said.

Taiwanese manufacturer Foxconn had approached

Nissan ( NSANF ) about a potential bid but paused its interest after it

sent a delegation to meet with Renault in France, Bloomberg News

reported on Friday.