Disagreements over specific terms have stalled talks between Nissan Motor (TYO:4021) and Honda (TYO:7267) in areas including autonomous driving and US production, Nikkei Asia reported on Friday, citing top officials.

The progress is delayed despite the collaboration seen as critical to both automakers' revival as Chinese competitors gain ground, said the news publication.

The alliance is considered essential to shoring up profitability at two companies that trail domestic rival Toyota (TYO:7203) by a wide margin, the news daily said.

During Thursday's earnings announcement, Nissan President Ivan Espinosa told reporters talks with Honda were "constructive," adding that recent discussions have centred on potential collaboration in North America, particularly the US.

Nissan expects a net loss of 650 billion yen for the fiscal year ending March - its second consecutive year in the red, the report added.

Honda posted its first operating loss in 14 years in its automobile segment for the nine months through December, as electric vehicles continue to struggle, it said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)