Honda and Nissan have officially begun merger talks to create the world's third-largest automaker

In its latest quarterly results, Nissan He said It will cut nine thousand jobs and reduce global production capacity by a fifth.

The automaker “was struggling in the market, was struggling internally, and didn't have the right product portfolio,” Peter Wells, professor of business and sustainability at the Center for Automotive Industry Research at Cardiff Business School, told CNBC.Street signs europe“Last week.

“There are a lot of warning signs, a lot of red flags around Nissan right now that indicate something needs to happen. Whether that's the answer is another question,” Wells added.

This is a breaking news story and will be updated soon.

— CNBC's Sam Meredith contributed to this story.