As widely expected, Honda and Nissan have ended discussions about a potential merger but will continue working together on electric vehicle (EV) development.
The two Japanese automakers, along with Mitsubishi, had considered joining forces to compete with rising Chinese EV manufacturers.
The companies confirmed they will collaborate through a strategic partnership focused on the future of intelligent and electrified vehicles.
A merger would have positioned them alongside Toyota, Volkswagen, General Motors, and Ford as a major global player.
Last week it emerged that Nissan was unhappy to be swallowed up a subsidiary of Honda, leading to leaks about the collapse of talks.