Talks aimed at integrating Nissan and Honda have fallen apart, as Nissan stood firm on maintaining a portion of its production capacity. Honda pressed Nissan to further reduce jobs and capacity, but Nissan resisted the closure of any factories. Honda subsequently suggested absorbing Nissan into its subsidiary, a move that heightened tensions and was perceived by Nissan as a affront to its corporate dignity. Consequently, the negotiations between the two companies reached an impasse.
