Japan's Nissan Motor is open to working with new partners including even technology firms after merger talks with cross-town rival Honda Motor foundered, people familiar with the automaker's thinking have said.

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.

The rumored collapse of merger talks between Honda and Nissan amidst the EV industry's transformation has thrust Foxconn into the spotlight as it continues to explore partnerships with Nissan and Renault.

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.

Negotiations between Nissan and Honda are reportedly shaky after the two Japanese automakers previously announced they would merge by 2026.

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.

Honda Motor Co and Nissan’s merger talks are likely going to break down. The possible failure of the merger discussions spells trouble for both the auto makers, however, reports suggested that this could end being up more problematic for Nissan.