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.

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,

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

The chief executives of the two automakers, at separate news conferences, traded jabs about Honda’s bid to change the terms of the deal.

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