Following reports of Nissan calling off a planned merger with Honda, the former is now open to working with new partners. The deal, if it was seen through, would have led to the formation of

Don’t underestimate the pride of an ailing company. After signing a memorandum of understanding in late December to “consider” a merger with Honda, a source told Reuters that Nissan is backing out of the discussion.

Nissan is open to working with new partners after merger talks with Honda foundered, two people familiar with its thinking said on Thursday, with Taiwan's Foxconn seen as one candidate. The struggling Japanese automaker is again at a crossroads after backing out of negotiations with bigger rival Honda to create the world's No.

Nissan has ended merger discussions with Honda and is now open to working with new partners, including technology firms such as Foxconn

With the $60 billion merger now seemingly off the table, Nissan is looking for other options to stay competitive, particularly after recent financial setbacks. Citing two unnamed sources, Reuters reports that the automaker is open to working with technology companies, with Foxconn emerging as a serious contender.

Nissan Motor Co.’s shares climbed after a report said Hon Hai Precision Industry Co. was making another pass at the flailing carmaker as its tie-up with Honda Motor Co. falls apart.

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As software-defined vehicles now dominate the auto industry, Nissan could benefit from a partnership with Foxconn, which can procure some of the most advanced semiconductors, Itochu Research Institute researcher Sanshiro Fukao said. In return, Foxconn could use Nissan’s surplus production capacity for its contract manufacturing business.

Even if the merger is off, Nissan remains keen on working with Honda in areas such as electric vehicles and software defined vehicles.