Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a potential combination that would have created the world's third-largest automaker.

After weeks of speculation, on December 23, Japanese automotive giants Nissan (NSANY) and Honda (HMC) announced that they signed a memorandum outlining their plans for a possible merger. Under the proposed deal,

Nissan plans to cut thousands of jobs and slash production in a turnaround plan that becomes more important after calling off its Honda tie-up.