Nissan was deep in trouble late last year when rival Honda offered a lifeline: a $60 billion tie-up that would help both Japanese automakers compete against the Chinese brands upending the car industry.

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,