Nissan Motor and Honda Motor plan to make a final decision on their potential management integration next week. Their talks are expected to be terminated after Nissan rejected Honda's proposal to make it a wholly owned subsidiary.

The Japanese automakers have been in talks since December about a merger under a joint parent company.
But Honda recently changed its strategy and proposed acquiring Nissan's shares to make it a subsidiary, an offer Nissan has rebuffed.

Honda has indicated that it is difficult to continue negotiations unless Nissan accepts.

Nissan President Uchida Makoto met Honda President Mibe Toshihiro on Thursday. He told him that his company cannot accept Honda's proposal and it plans to end the management integration talks.

The two sides plan to hold board meetings next week to make their final decisions.

However, the companies still say they are considering continuing their collaboration on software development and in the EV field that started last August.

The merger talks between the two major Japanese automakers were prompted by concerns that neither of them can compete with US and Chinese rivals on their own.