The Japanese companies’ decision to call off negotiations highlights the challenges legacy automakers face in partnering to tackle new technologies.
Japan’s second- and third-largest automakers hope the deal can help them catch up with Tesla and China’s BYD in electric vehicles and advanced software.
The automakers, Japan’s second and third largest, are said to be discussing a tie-up that could reshape the country’s industry.
The Japanese automaker is carving deep cuts in its global operations as it struggles with a steep drop in sales.
Akio Toyoda ran Toyota for 14 years before handing the reins to a new C.E.O. last year, but some have grown concerned about the control he still wields.