Following reports of Nissan calling off a planned merger with Honda, the former is now open to working with new partners. The deal, if it was seen through, would have led to the formation of

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.

Nissan has ended merger discussions with Honda and is now open to working with new partners, including technology firms such as Foxconn

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.

As software-defined vehicles now dominate the auto industry, Nissan could benefit from a partnership with Foxconn, which can procure some of the most advanced semiconductors, Itochu Research Institute researcher Sanshiro Fukao said. In return, Foxconn could use Nissan’s surplus production capacity for its contract manufacturing business.