- Nissan’s CEO has reportedly informed Honda’s CEO of his decision to end merger talks.
- The $60 billion Honda-Nissan merger would have created the world’s third-largest automaker.
- Nissan is now searching for new partners, with iPhone maker Foxconn as a key contender.
Nissan has reportedly backed out of merger discussions with Honda after the two automakers failed to see eye to eye on the terms. Now, Nissan is already scouting for a new partner, one potential candidate being Foxconn, the Taiwanese tech giant best known for assembling iPhones.
More: Nissan Cancels US-Built Small Electric SUV, Per Report
Honda and Nissan initially signed a memorandum of understanding in December 2024, laying the groundwork for a possible merger, with plans to announce further details by mid-February. The deal was supposed to include the creation of a joint venture by August 2026. However, reports suggest that things unraveled when Nissan balked at Honda’s proposal to effectively become one of its subsidiaries, an idea that didn’t sit well with Nissan’s leadership.
Nissan Pulls the Plug
According to Japanese media outlet Nikkei, Nissan CEO Makoto Uchida personally informed Honda CEO Toshihiro Mibe of the decision during a meeting in Tokyo on Thursday morning. Meanwhile, Kyodo News reports that Nissan’s board had already made the final call a day earlier, during a Wednesday meeting.
Despite the collapse of full merger talks, Honda isn’t ruling out future collaboration with Nissan, just on a smaller scale. Sources indicate that the two companies may still work together on EV software and battery development, though details remain vague.
In response to the news, a Renault spokesperson stated that the company would “vigorously defend the interests of the Renault Group and its stakeholders.” While the comment raises some questions about Renault’s stake in all this, neither Nissan nor Honda have made official statements yet. For now, both companies are sticking to their original plan of announcing the outcome of their discussions in mid-February.
In Search Of A New Partner
With the $60 billion merger now seemingly off the table, Nissan is looking for other options to stay competitive, particularly after recent financial setbacks. Citing two unnamed sources, Reuters reports that the automaker is open to working with technology companies, with Foxconn emerging as a serious contender.
More: Honda Developing Sub-$30K EV For North America
According to the report, Foxconn expressed interest in acquiring Nissan as early as December, despite the then-active merger talks with Honda. Nissan initially rejected the offer, but sources suggest the company is still considering some form of partnership with the Taiwanese electronics manufacturer.
This wouldn’t be Foxconn’s first foray into the EV world. The company already runs an EV subsidiary called Foxtron, led by Jun Seki, a former Nissan senior executive and one-time CEO candidate. A collaboration between Nissan and Foxconn could give the Japanese automaker a much-needed cash infusion, especially after being forced to cut 9,000 jobs and slash production by 20%. For Foxconn, a deal with Nissan could help fast-track its ambitions in the automotive sector.
