[News] Nissan Opens to New Partners, Foxconn Seen as a Key Contender

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According to a Reuters report citing sources, following the reported termination of merger talks between Nissan and Honda, Nissan is now actively exploring new partnerships, with Taiwan’s Foxconn emerging as a contender.

As the report notes, Nissan is interested in partnering with technology firms to navigate the rapid transformations brought by electric vehicles (EVs), software-driven cars, and the emergence of rapidly advancing Chinese automakers.

Foxconn’s Expanding EV Business

The report from Reuters highlights that Foxconn has been aggressively expanding its EV contract manufacturing business. In December, Reuters reported that Foxconn had approached Nissan with an acquisition proposal, though the automaker ultimately rejected the offer.

As for whether Foxconn would create its own EV brand if it ever gained control of Nissan, a report from Economic Daily News cites Foxconn Chairman Young Liu, who stated that the company remains firmly focused on manufacturing rather than brand management.

Liu explained that Foxconn’s core business lies in manufacturing services and that the company intends to concentrate solely on its strengths in manufacturing operations, rather than expanding into brand management.

Honda Also Faces the Need for a New Partner

Meanwhile, according to a report from Toyo Keizai, the termination of merger talk has also cast uncertainty over Honda’s future growth strategy. Like Nissan, Honda requires substantial financial resources not only for EV development but also for advancements in software technology. Securing development resources and reducing investment burdens have now made finding a new strategic partner a necessity.

As indicated by the report from Toyo Keizai, Honda’s plan to co-develop affordable compact and mid-size EVs with General Motors (GM) has been scrapped. The two companies had also collaborated in the autonomous driving sector, but this partnership was dissolved following GM’s withdrawal from its autonomous taxi business.

Notably, in September 2024, GM began exploring a strategic partnership with South Korea’s Hyundai Motor.

Read more

• [News] Nissan Reportedly Notifies Honda of Intent to End Merger Talks, Potentially Paving Way for Foxconn Deal
• [News] Nissan Reportedly Planning Job Cuts in Japan Amid Merger Talks with Honda

(Photo credit: Nissan)