Since the dramatic downfall of “Cost Killer” chief executive Carlos Ghosn in 2018, Japan’s Nissan Motor Co. has labored with weak sales and an outdated model lineup.In December, Honda Motor Co. threw the company a potential lifeline by agreeing to consider a deal that would create one of the world’s biggest carmakers — and a more formidable rival to upstart Chinese electric vehicle (EV) brands.

The Japanese automakers Nissan and Honda have called off a $50 billion merger that would have formed one of the world's largest car companies.

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.