Nissan is set to call off merger talks with rival Honda, a source said on 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.

If successful, the merger would create the world's third-largest auto group by vehicle sales after Toyota Motor Company and Volkswagen AG. It would be the car industry’s first merger since Fiat Chrysler Automobiles and PSA combined to become Stellantis in 2021.