Nissan Motor will aim to announce the direction of its possible integration with Honda Motor by mid-February, a company spokesperson said on Friday, pushing back the plan from the end of January. The two Japanese automakers have been in talks to explore a merger by 2026,

Honda and Nissan will unveil an outline of their business integration around mid-February, informed sources said Friday.

As talks between the automakers continue, analysts say a combination makes sense but may face hurdles, including short-term financial hardship.

Renault executives travelled to Japan this week to meet counterparts at Nissan in an effort to maximise the value of the French automaker's stake in the Japanese firm ahead of its merger with Honda, a source close to the matter told Reuters.

According to sources familiar with the matter, Honda has been pushing Nissan to accelerate its restructuring efforts. In November, Nissan announced plans to cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent after reporting a more than 90 percent drop in net profit for the April-September period.

Honda Motor and Nissan Motor have said they will determine the next steps in their planned merger by the end of January. TOKYO -- Honda Motor and Nissan Motor will aim to announce how they will proceed with their planned merger by mid-February, Nikkei learned Friday.

As Honda and Nissan push forward with merger plans, Mitsubishi Motors may bow out, citing doubts about its influence in the new partnership.

There's a lot at stake here, with other players like Renault and Mitsubishi involved as well, to say nothing about Foxconn's intervention in the matter. At the core of this merger is the elephant in the room,