In a joint statement released the same day, Honda acknowledged that it proposed to divert from its original intention of forming a joint holding company to one where "Honda would

Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a potential combination that would have created the world's third-largest automaker.

The Japanese companies’ decision to call off negotiations highlights the challenges legacy automakers face in partnering to tackle new technologies.

Less than two months after a potential merger was floated, Honda and Nissan have called the potential partnership off, forcing Nissan, which has been experiencing difficulties, to explore alternate collaborations.

As far as terrible ideas go, this one is pretty bad. Honda and Nissan simply should not merge. When it was announced that the Memorandum of Understanding (MOU) signed last December “for consideration of a business integration between the two companies” was terminated on February 13,

Honda may be willing to restart negotiations that fell apart earlier this month, on the condition that Nissan CEO Makoto Uchida leaves the automaker, according to a Monday report from the Financial Times.

Although Mitsubishi considered joining the Honda-Nissan merger, that was old news by late January. That alliance might have been part of the problem. Although not an actual merger, the car companies involved each own stakes in the other—in Renault's case,

Nissan and Honda ended merger talks to forge a $60 billion car company on Thursday, pitching Nissan deeper into uncertainty and highlighting the pressure on legacy automakers from Chinese rivals upending the industry.

Japan’s Nissan and Honda have ended discussions on a deal that would have created the world’s third-largest carmaker.

It's no secret that Nissan was unhappy with Honda's terms to potentially merge, but insiders have detailed just what broke the relationship.