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 reality is that Nissan would effectively become a subsidiary of Honda, something the company is finding hard to swallow. Mitsubishi Motors, a much smaller vehicle manufacturer, has already indicated that it will decline an invitation to participate in the merger so as not to lose managerial independence.

Makoto Uchida, Director, Representative Executive Officer, President and CEO of Nissan Motor Corporation holds a joint press conference on their merger talks, in Tokyo, Japan, December 23, 2024. REUTERS/Kim Kyung-Hoon/File Photo TOKYO (Reuters) - Nissan Motor CEO Makoto Uchida told his Honda counterpart Toshihiro Mibe that he wants to terminate their discussions over a possible merger,