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

Honda and Nissan announced Thursday they were terminating negotiations for a mega-merger that would have created the world's third-largest car company.

Japanese automakers Honda, Nissan and Mitsubishi said Thursday they are dropping their talks for a business integration. The automakers agreed to end their agreement regarding the consideration of the structure for a collaboration of the trio,