Nissan and Honda's merger talks, initially aimed at creating one of the world's largest automakers, fell apart due to Nissan's resistance and demands for equality despite its weaker position. The proposed deal would have seen Nissan become a subsidiary,

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.

Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.

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

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.

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

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

Nissan was deep in the trenches, with its existence at stake, but Honda's timely entry gave it a positive direction. Here's how everything went down.