Honda Motor Co. shares experienced significant volatility in Tokyo trading, initially surging by as much as 11.97% to 1,552.50 yen following reports of potential merger talks with Nissan Motor Co. However, the shares later fell by 3%. The fluctuation in Honda's stock price was attributed to reports that Honda had proposed making Nissan a subsidiary, a move that could potentially end their merger discussions. Nissan's shares also saw a dramatic rise, reaching a peak of 7% higher at 435.9 yen, despite initial declines. The proposed acquisition faced strong opposition from Nissan, concerned about its autonomy. Both companies had previously agreed to explore a merger to compete with Tesla and Chinese electric vehicle manufacturers, but recent developments suggest the talks might be called off. Honda and Nissan are Japan's second and third largest automakers, respectively, following Toyota.