Japan's Nissan posted a 78% fall in third-quarter operating profit to 31.1 billion yen ($201.84 million) on Thursday, missing analysts' estimates, and cut its annual outlook for the third time.
Japan's Nissan and Honda said on Thursday they had officially ended talks to merge.
Japanese automakers Nissan and Honda have called off a $50 billion merger that would have formed one of the world's largest car companies. Both firms said in a statement on Wednesday that they called off the deal "to prioritize speed of decision-making and execution of management measures" as an "increasingly volatile" car market heads into an electric-vehicle era.
The boards of Nissan and Honda both voted on Thursday to officially end talks to merge the two Japanese automakers, broadcaster TBS reported.
Nissan and Honda are expected to lay out a new stage in their uncertain relationship on Thursday, one that is likely to see them formally call off a plan to merge after talks between the two Japanese automakers foundered.
Nissan was deep in trouble late last year when rival Honda offered a lifeline: a $60 billion tie-up that would help both Japanese automakers compete against the Chinese brands upending the car industry.
Foxconn Chairman Young Liu said on Wednesday that the company's aim is cooperation with Japan's Nissan , not acquisition.
Japan's Nissan Motor is open to working with new partners including even technology firms after merger talks with cross-town rival Honda Motor foundered, people familiar with the automaker's thinking have said.
Nissan plans to pull out of merger discussions with Honda after the larger automaker proposed making it a subsidiary, a move Nissan opposes, according to media outlets citing sources familiar with the talks. The two companies signed a memorandum of understanding (MOU) in December to explore forming a holding company, which would have created the world's third-largest automaker.
Nissan Motor CEO Makoto Uchida told his Honda counterpart Toshihiro Mibe that he wants to terminate their discussions over a possible merger, the Asahi newspaper reported online on Thursday.
Two industry powerhouses were slated to team up, but that will no longer happen. Transcript: Conway Gittens: A deal to create the world's third biggest automaker is falling part.
Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.