The highly anticipated $60 billion merger between Japanese automakers Honda and Nissan has been scrapped, according to sources cited by Reuters. The collapse of the deal is attributed to Nissan's "pride and insufficient alarm about its predicament," as well as Honda's sudden revision of the merger terms, which would have seen Nissan become a subsidiary.

The news marks a significant setback for both companies, which had been in talks since last year to explore ways to collaborate and better navigate the rapidly changing automotive landscape. The merger would have created the world's third-largest automaker, with a combined market value of over $60 billion.

Industry insiders suggest that the power struggle between the two companies was a major obstacle to the deal. Honda's proposal to make Nissan a subsidiary was seen as a major concession, and Nissan's reluctance to accept this terms ultimately led to the collapse of the talks. The development also highlights the challenges faced by traditional automakers in adapting to the dramatic changes in the industry, including the rise of electric vehicles and autonomous driving.

The failed merger has already attracted interest from other players in the industry. Taiwanese electronics giant Foxconn, which has recently ventured into the electric vehicle market, has expressed interest in buying a stake in Nissan. This move could potentially create a new alliance in the industry and further shake up the competitive landscape.

The collapse of the Honda-Nissan merger also has implications for Mitsubishi, which is currently in a strategic alliance with Nissan and French automaker Renault. The deal would have likely seen Mitsubishi folded into the merged entity, but with the talks now off the table, the future of this alliance remains uncertain.

The failed merger serves as a reminder of the intense competition and rapid transformation underway in the automotive industry. As traditional players struggle to adapt to new technologies and business models, new entrants and alliances are emerging to challenge the status quo. The next move by Honda, Nissan, and other industry players will be closely watched as the industry continues to evolve.

In conclusion, the collapse of the Honda-Nissan merger marks a significant turning point in the automotive industry. The development highlights the challenges faced by traditional players in adapting to change and the opportunities presented by new entrants and alliances. As the industry continues to evolve, one thing is clear: the future of the automotive sector will be shaped by a complex interplay of technological innovation, business model disruption, and strategic partnerships.