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.

Japanese automaker Nissan (NSANY) finds itself at a crossroads. Nissan was poised to participate in a megamerger with rival Honda (HMC), and it was a huge development when the talks were revealed late last year.

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.