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

Japanese automakers Nissan and Honda stopped negotiations on a merger on Thursday but committed to continue collaborating.

Honda and Nissan, it turns out, have irreconcilable differences. 2/13/25 Update: The merger idea is dead. Honda and Nissan have officially called off merger talks after failing to agree on the role Nissan would play in the proposed company.