Nissan has rejected a proposed merger with Honda, citing unfavorable terms that would have made it a subsidiary rather than an equal partner, according to two people familiar with the matter. The move casts uncertainty over Nissan’s future as it faces mounting challenges in the U.

There's strife of the horizon as Nissan vehemently opposes Honda's suggestion of making the struggling carmaker its subsidiary.

TOKYO — Nissan is set to call off merger talks with rival Honda, a source said Wednesday, abandoning a $60 billion-plus tie-up that would have created the world's No. 3 automaker and raising questions about how it will drive a turnaround by itself.