Earlier this week, Honda Motor and Nissan confirmed they are in talks about a possible merger at time of auto industry upheaval. Toyota stock cleared a key level on Friday. Honda stock rallied further above a technical level,

A potential merger of Honda and Nissan, and its alliance partners Mitsubishi and Renault SA, could create a new manufacturer worth $79.9 billion, producing 8 million cars a year.

The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

Both Toyota and Honda posted quarterly profit declines in November, amid challenges in critical global markets, including the U.S. Japan and China. Reported Toyota ROE Target. On