There's strife of the horizon as Nissan vehemently opposes Honda's suggestion of making the struggling carmaker its subsidiary.

Honda shares surged on Wednesday as Japanese media said the automaker had proposed making its struggling rival Nissan a subsidiary -- with some reports saying the move could spell the end of their merger talks.

Honda Motor Co. has proposed a plan to buy shares in Nissan Motor Co. to make it a subsidiary, people familiar with the matter said Tuesday. Honda apparently aims to increase its involvement in Nissan’s management to help accelerate its turnaround efforts.