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.

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.

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

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

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 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."

The proposed merger between Honda and Nissan which hit the dust last week would have created the world’s fourth-biggest automaker. The shotgun marriage

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