Nissan, Honda end merger talks

Japanese automakers Nissan and Honda said on Thursday their boards voted to end merger talks but would continue to collaborate on electric vehicles.

The merger would have created a car group worth about $60 billion, making it the world’s fourth-largest by vehicle sales after Toyota, Volkswagen and Hyundai.

Nissan, Japan’s third-biggest automaker, pulled out of talks with larger rival Honda after negotiations were complicated by growing differences, including Honda’s proposal that Nissan become a subsidiary, sources said earlier.

The automakers and junior partner Mitsubishi Motors said they would consider a merger late last year. The sources later said Mitsubishi was unlikely to participate.

“Going forward, the three companies will cooperate in a strategic partnership aimed at the era of intelligence and electric vehicles,” the three companies said in a statement.