Japan News reports that the merger failed because Honda changed its mind about establishing a joint venture with Nissan and demanded that it become a subsidiary. The outlet quotes Honda President Toshihiro Mibe (above) citing concerns about the timeline, saying "the merger would move at a snail’s pace and the situation could become even more dire."

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.