Honda Motor Co. absorbing Nissan Motor Co. could give the two struggling Japanese brands the scale they need to take on China’s BYD Co., sales figures released Wednesday show.Most Read from BloombergHo Chi Minh City Opens First Metro Line After Years of DelayHonda,

The merger talks between Honda and Nissan are the latest example of companies trying to respond to the competitive threat from China.

Honda and Nissan plan to merge as the two Japanese firms seek to fight back against competition from the Chinese car industry. Joining forces would create one of the world's biggest car producers alongside Toyota, Volkswagen, General Motors and Ford. And who is France's new finance minister?