[News] Foxconn Clarifies No Plans for Own Car Brand, Seeks Nissan Partnership Under CDMS Model

According to a report from Commercial Times, after the failed merger plan between Honda and Nissan, speculation arose regarding whether Foxconn would acquire Nissan. On February 12, Foxconn Chairman Young Liu addresses these concerns, stating that for Foxconn, this is not an acquisition but a collaboration opportunity.

Liu emphasizes that Foxconn has been in discussions with multiple automakers and will continue negotiations under its Contract Design and Manufacturing Service (CDMS) business model, as highlighted by the report.

The report notes that Foxconn has been in contact with Renault, Nissan’s major shareholder. However, Liu stresses that the primary purpose of these discussions is to explore collaboration rather than acquiring equity in Nissan, stating that Foxconn will not enter the car branding business, and if it has the opportunity to collaborate with Nissan, the partnership will follow the CDMS model.

Nissan and Honda announce on the 13th that they have officially agreed to end their merger negotiations, as reported by Economic Daily News. The two automakers state that moving forward, they may collaborate under a strategic partnership framework in the fields of smart and electric vehicles. Sources reveal that Honda’s proposal to make Nissan its subsidiary was the key factor leading to the breakdown of the negotiations, as the report notes.

Foxconn’s EV Expansion and Challenges

According to a report from Wealth Magazine, electric vehicles have been a major focus for Liu since he assumed leadership in 2019. Over the past five years, Foxconn has launched nine electric vehicle models as part of its aggressive expansion in the EV sector.

As indicated by another report from Economic Daily News, Liu states that Foxconn will significantly increase its capital expenditure in new industries in 2025. He explains that after accumulating expertise over the past three to four years, the company is now entering an expansion phase, which requires additional investment.

Notably, Liu emphasizes that North America will play a crucial role in Foxconn’s EV strategy, as the company plans to manufacture vehicles locally. This move will necessitate additional capital expenditures to establish new production facilities, as indicated by the report. He also mentions that collaborations with Japanese companies will require further financial commitments as part of Foxconn’s broader expansion strategy.

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(Photo credit: Foxconn)