Honda proposed changing the structure of the intended merger from a joint holding company, as agreed initially, to a deal with Honda as the parent company and Nissan its subsidiary through a share exchange. Both companies concluded eventually that it was best to “cease discussions,” the statement added.

The collapse of merger talks between Honda and Nissan could open the door for iPhone manufacturer Foxconn to make a big play in automotive production. Why it matters: Foxconn has been angling for years to translate its consumer electronics production expertise into EV manufacturing.

The end to talks pitch Nissan deeper into uncertainty, and underline the challenge for legacy auto companies as Chinese rivals upend the industry