Japan's Nissan Motor is open to working with new partners including even technology firms after merger talks with cross-town rival Honda Motor foundered, people familiar with the automaker's thinking have said.

Japanese automaker Nissan (NSANY) finds itself at a crossroads. Nissan was poised to participate in a megamerger with rival Honda (HMC), and it was a huge development when the talks were revealed late last year.

Merger talks between Honda Motor and Nissan Motor turned out to be short-lived, with the latter rejecting the deal after the two failed to agree on the valuation of the carmakers under a holding company.

Nissan and Honda's merger talks, initially aimed at creating one of the world's largest automakers, fell apart due to Nissan's resistance and demands for equality despite its weaker position. The proposed deal would have seen Nissan become a subsidiary,

The rumored collapse of merger talks between Honda and Nissan amidst the EV industry's transformation has thrust Foxconn into the spotlight as it continues to explore partnerships with Nissan and Renault.

TOKYO — Nissan is set to call off merger talks with rival Honda, a source said Wednesday, abandoning a $60 billion-plus tie-up that would have created the world's No. 3 automaker and raising questions about how it will drive a turnaround by itself.

Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.

A proposed $58 billion merger to create the world’s fourth-largest carmaker appears on the verge of collapse after Honda made an unexpected proposal to turn Nissan into a fully owned subsidiary, according to three people familiar with the matter.

Two of Japan’s largest automakers have been in talks to combine their operations to form one of the world’s biggest car groups.

Honda Motor Co and Nissan’s merger talks are likely going to break down. The possible failure of the merger discussions spells trouble for both the auto makers, however, reports suggested that this could end being up more problematic for Nissan.