- It’s understood that Foxconn’s interest in Nissan may have accelerated ongoing discussions with Honda.
- The Taiwanese company is eager to begin manufacturing vehicles.
- Foxconn is particularly interested in Nissan’s car manufacturing and design skills.
Soon after reports emerged about Honda and Nissan exploring a potential merger, new details suggest that Taiwanese iPhone manufacturer Foxconn has its sights set on acquiring a stake in Nissan. According to The Wall Street Journal, sources “familiar with the matter” say the contract manufacturing giant has been actively “discussing acquiring Nissan.” If such a deal were to materialize, it would mark a significant shift for Foxconn as the company intensifies its push to break into the automotive industry.
Foxconn, known for its role as Apple’s manufacturing powerhouse, is reportedly keen on Nissan’s core assets, especially its car manufacturing and design expertise. With its EV ambitions spearheaded by former Nissan executive Jun Seki, Foxconn has already committed to investing $250 million into a Vietnamese industrial park focused on electric vehicle components. While the company has previewed several promising EV concepts, none have hit the production line just yet.
Read: Apple iPhone Maker Foxconn’s Latest EV Is A Minivan Designed By Pininfarina
The Wall Street Journal reports that Foxconn plans to produce vehicles in a similar fashion to how it builds iPhones for Apple, with companies outsourcing vehicle design and production to them. While it has limited expertise in vehicle chassis and body manufacturing, a partnership with Nissan could help accelerate its plans to start building cars.
While discussions between Honda and Nissan are reportedly underway, there’s speculation that they might establish a new holding company to facilitate resource sharing. Although Renault has not directly commented on the potential merger with Honda, a spokesperson for the French automaker stated that it “supports Nissan’s efforts to restore [its] business situation [sic].” According to The Financial Post, a deal with Honda could also help insulate Renault from the ongoing financial struggles at Nissan.
Interestingly, reports suggest that Foxconn’s growing interest in Nissan may have acted as a catalyst, speeding up merger talks between Honda and Nissan. This urgency appears to stem from concerns that the Taiwanese manufacturing giant could make a move to acquire the struggling carmaker outright, creating additional pressure for Honda and Nissan to solidify their partnership before it’s too late.
A merger between Nissan and Honda could include Mitsubishi and consolidate most of the Japanese car industry into just two companies, Nissan-Honda and Toyota, alongside all the various firms it has stakes in, including Suzuki, Subaru, and Mazda.
