The struggling Japanese carmaker is withdrawing from talks, the Nikkei business daily and other local media reported.

The Wall Street Journal reported that Nissan was likely to walk away from a merger proposed in December that would create the world’s third-largest auto maker. It was a

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

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.

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.

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

Though both automakers envisioned a partnership in which they could save money by jointly developing new cars and vehicle software as equals, Honda's latest move shows that it feels like it is carrying some of Nissan's weight,

The pair are discussing various options, including the possibility of withdrawing from deal talks, according to statements.

Honda-Nissan merger faces delays as leadership disputes and restructuring issues threaten the deal, with Mitsubishi holding off on joining.