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.

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,

Merger talks between Honda Motor and Nissan Motor turned out to be short-lived, with the latter rejecting the deal after the two failed to agree on the valuation of the carmakers under a holding company.

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.

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.

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.