Don’t underestimate the pride of an ailing company. After signing a memorandum of understanding in late December to “consider” a merger with Honda, a source told Reuters that Nissan is backing out of the discussion.

The struggling Japanese automaker is again at a crossroads after backing out of negotiations with bigger rival Honda to create the world's No. 3 automaker, a deal that would have been the latest major change in the shifting global car industry.

Nissan Motor Co.’s shares climbed after a report said Hon Hai Precision Industry Co. was making another pass at the flailing carmaker as its tie-up with Honda Motor Co. falls apart.Most Read from Bloo