Merger talks between Honda and Nissan have collapsed after the firms failed to agree on a multi-billion dollar tie-up deal. The Japanese car makers aimed to combine their businesses to fight back against competition from rival firms,

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

With the Nissan-Honda merger officially dead, Nissan is now moving forward with its own restructuring plan.That means deep job cuts, plant closures, and a more aggressive approach to development cycles as the company attempts to regain stability.