After weeks of speculation, on December 23, Japanese automotive giants Nissan (NSANY) and Honda (HMC) announced that they signed a memorandum outlining their plans for a possible merger. Under the proposed deal,

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

Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a potential combination that would have created the world's third-largest automaker.