Mitsubishi Motors, a junior partner of Nissan Motor, is considering not joining a planned business merger between Nissan and Honda Motor, the Yomiuri online said on Friday. The report came after Nissan and Honda last year said they would begin formal talks on the merger that could potentially create the world's third-largest auto group.

As Honda and Nissan negotiate the terms of a possible merger, we take a speculative look at what new vehicles could spawn from the unprecedented collaboration.

Japan's Mitsubishi Motors, a junior partner of Nissan Motor, is considering not joining a planned merger between Nissan and Honda Motor, sources told Reuters on Friday. Mitsubishi Motors plans to remain listed while continuing its cooperative relationship with both companies,

Despite an initial MoU involving Mitsubishi in talks of "participation, involvement, and synergy sharing" in the Honda-Nissan merger, it now appears the company wants to go solo. The report indicates Mitsubishi had considered joining the new holding company with Honda and Nissan but has now opted out.

Shares in Mitsubishi plunged nearly nine percent Friday after a report said it might not join a planned merger between industry giants Honda and Nissan. Honda, and its struggling rival Nissan, agreed last month to launch talks on the tie-up, which is seen as an attempt to catch up with Chinese rivals and Tesla on electric vehicles.