Honda and Nissan, it turns out, have irreconcilable differences. 2/13/25 Update: The merger idea is dead. Honda and Nissan have officially called off merger talks after failing to agree on the role Nissan would play in the proposed company.

The Japanese companies’ decision to call off negotiations highlights the challenges legacy automakers face in partnering to tackle new technologies.

Japanese automaker Nissan finds itself at a crossroads. While Nissan potentially scrambles for a new dance partner, the question remains how Nissan arrived at the position it finds itself in now.