Honda-Nissan merger close to collapse on smoldering mistrust

TOKYO -- A seemingly unbridgeable divide between Honda Motor and Nissan Motor has jeopardized the highly anticipated merger of the two Japanese automakers that promised to create the world's third-largest alliance in the industry.

Nissan executives on Monday determined the need to suspend merger talks with Honda. Nissan had entered negotiations thinking the integration would be on equal footing, but Honda -- finding Nissan's proffered reforms inadequate -- proposed turning the compatriot into a subsidiary.