Japan's Nissan may call off its merger talks with Honda, according to a person familiar with the matter, adding that Nissan's board members were due to meet in the near future to decide a course of action.

Honda has proposed turning Nissan into a fully owned subsidiary in a move that threatens the collapse of $58bn merger talks to create the world’s fourth-largest automaker, according to two people familiar with the matter.

There's strife of the horizon as Nissan vehemently opposes Honda's suggestion of making the struggling carmaker its subsidiary.