Honda and Nissan are considering calling off their merger talks, Japan's Asahi Shimbun reported on Wednesday citing several sources.

By Daniel Leussink and Maki Shiraki TOKYO (Reuters) -Japanese automakers Honda and Nissan may call off merger talks, the Asahi Shimbun newspaper reported on Wednesday, citing multiple sources, a move that would pitch hard-hit Nissan into greater uncertainty.

Japanese automakers Honda and Nissan may halt their merger discussions. This follows Honda's dissatisfaction with progress and hard-hit Nissan's reluctance. The merger aimed to counter threats from new electric vehicle entrants.

Though both automakers envisioned a partnership in which they could save money by jointly developing new cars and vehicle software as equals, Honda's latest move shows that it feels like it is carrying some of Nissan's weight,