Nissan is in talks to sell its automotive parts business to Ford for up to $1.4 billion, according to people familiar with the matter.
The deal would be the first major merger between the world’s two largest automakers since 2010, when the two companies merged to form the Ford Group.
Nissan would not disclose the size of the transaction or the nature of the deal, which was first reported by Reuters.
Ford declined to comment.
Nissan has been trying to become more competitive with its main rival, Volkswagen Group, which has been expanding into auto parts and other parts businesses.
Ford, whose chief executive, Alan Mulally, is currently in Washington for meetings, has been investing heavily in its automotive business.
The company also has been pushing its own car parts business, with plans to spend $1 billion to buy new parts and manufacturing plants this year.
Nissan was last month ranked the third-largest auto parts manufacturer by U.S. auto parts suppliers.
Its shares have fallen 10% this year, while Volkswagen’s have risen 12%.
Nissan was in a strong position to make a deal with Ford.
The Japanese automaker is the world market leader in the auto parts business with around 9,000 employees and accounts for nearly a quarter of the global market for auto parts.
It also has its own production plant in Tennessee and a $2 billion research and development center in California.