After Honda walked away from merger talks, Nissan finds itself at a crossroads. Could tech giant Foxconn or private equity ...

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

But Honda has already told Nissan it will be difficult to continue merger talks unless Nissan agrees. The Japanese automakers have been in talks since December about setting up a joint parent company.

Honda and Nissan's merger will create the world's third-largest automaker, after Toyota and Volkswagen. The newly created entity will most likely include Mitsubishi, which is already in a ...