Nissan Motor Co. is aggressively looking for a new partner as it gets ready to scrap talks with Honda Motor Co. over a planned joint holding company, said people familiar with the matter.

The Japanese automobile maker is looking at partnerships, preferably with a U.S. high-tech entity, to improve its position in electric and autonomous vehicles. North America is the biggest market for Nissan. As this company moves in line with shifts and industry directions, it will look at strategic alliances outside the auto sector.

Nissan's stock rose as much as 8.7% in early afternoon trading in Tokyo Thursday after the report. The company's spokesman, Shiro Nagai, refused to comment, saying that it would detail the discussions with Honda around mid-February as planned.

Talks between the two carmakers have been tense because of differences in investment levels and corporate restructuring. Honda had planned to buy Nissan and make it a subsidiary-an idea that has been strongly opposed by many Nissan executives, insiders said. Furthermore, Honda wants Nissan to carry out comprehensive restructuring, including the reduction of jobs and output, which Nissan is not doing currently as part of its strategy, sources said.

The companies also agreed to terminate exclusive talks, moving them another step closer to splitting ways without incurring a ¥100 billion ($657 million) termination charge, according to a Dec. 23 memorandum of understanding.

As these changes take place, Nissan's board is forcing the CEO, Makoto Uchida, and other top executives to work together on developing a much better comprehensive restructuring plan along with any new partnership. More comprehensive restructuring is likely to be undertaken before Nissan announces its quarterly earnings on Feb 13, when the board gathers to ratify decisions about its way forward.

Nissan has not yet been able to recover from the fallout of former Chairman Carlos Ghosn's 2018 arrest on financial misconduct charges. The scandal left the automaker grappling with an aging product lineup and excess production capacity.

In November, the firm revealed a 94 per cent drop in net income, which led to severe cost-cutting measures. Nissan also planned to cut 9,000 jobs and reduce its production capacity by 20 per cent along with reducing its annual profit forecast by as much as 70 per cent. Restructuring plans currently under discussion are set to go further still.

"Further earnings deterioration is possible at Nissan. Additional restructuring measures are vital", said Citigroup's analyst Arifumi Yoshida.

One potential contender for Nissan’s partnership is Hon Hai Precision Industry Co., better known as Foxconn. The Taiwanese electronics giant, which has been expanding into electric vehicle manufacturing, previously expressed interest in Nissan but paused its pursuit when Nissan entered exclusive negotiations with Honda. Now, with those talks faltering, Foxconn may revisit the possibility of a deal.

As Nissan goes forward, the company is going to focus on securing a strategic partnership that is in line with its ambitions on electrification and automation while also addressing its current financial challenges.