Nissan shifts gears: Ditches Honda, eyes Foxconn alliance
After unsuccessful negotiations with Honda, Nissan has ended discussions about a merger and is now searching for a new partner, reports "Nikkei". Among the potential candidates is the Taiwanese technology giant Foxconn.
Nissan abandoned plans for a $60 billion merger with Honda, which could have made it the third-largest car manufacturer in the world. The primary issue was disagreements over the terms of the merger.
According to "Nikkei", Nissan's president, Makoto Uchida, informed Honda's president, Toshihiro Mibe, about the termination of discussions during a meeting in Tokyo on Thursday morning. The decision was made at Nissan's board meeting on Wednesday.
Honda and Nissan signed a memorandum of understanding in December 2024, planning to announce details in mid-February and form a joint venture by August 2026. However, Nissan ultimately did not accept Honda's proposal.
Despite breaking off talks, further cooperation between Honda and Nissan is not ruled out, with a focus on developing software and batteries for electric vehicles, reports "Kyodo News".
Nissan is now considering new partnerships. Reuters reports that the company is open to collaborating with technology firms, and Foxconn is one of the serious candidates.
Foxconn, the iPhone producer, expressed interest in acquiring Nissan in December despite ongoing talks with Honda at the time. Although the offer was rejected, Nissan is currently considering the possibility of collaborating with the Taiwanese giant.
Foxconn owns Foxtron, a company involved in electric vehicles, led by Jun Seki, a former high-ranking Nissan director and candidate for the CEO position. Cooperation with Foxconn could help Nissan following recent financial difficulties, which led to the company laying off 9,000 employees and reducing production by 20%.
