Even if the merger is off, Nissan remains keen on working with Honda in areas such as electric vehicles and software defined vehicles.

Don’t underestimate the pride of an ailing company. After signing a memorandum of understanding in late December to “consider” a merger with Honda, a source told Reuters that Nissan is backing out of the discussion.

Nissan has ended merger discussions with Honda and is now open to working with new partners, including technology firms such as Foxconn