Foxconn Will Put Its Nissan Acquisition Ambitions On Hold While The Automaker Negotiates With Honda

by Chris Teague

Published: December 20th, 2024

foxconn will put its nissan acquisition ambitions on hold while the automaker

The news that Honda and Nissan are discussing a merger is certainly worth all the attention it’s getting, but one of the more interesting parts of the story relates to a third company. Foxconn – you know, the company that builds iPhones – was interested in acquiring Nissan but is putting that effort on hold while it negotiates with Honda.

We don’t know how far Foxconn got with Nissan or if any serious discussions had taken place prior to the automaker’s rumored talks with Honda. Foxconn had sent a group to chat with Renault, which holds a 36 percent stake in Nissan, prior to its decision to pause acquisition efforts.

The company, which has long been an Apple manufacturing partner, hasn’t been shy about its desire to move into the electric vehicle space. Though it’s taking a step back while the two Japanese automakers discuss a merger, it isn’t giving up entirely. A source told Automotive News that Foxconn would take a “wait and see” approach to the situation, linking a decision to move forward to the success of the Nissan-Honda talks.

Nissan’s sales have tumbled, and dealer inventory has ballooned, putting it in a precarious situation heading into 2025. A merger would help buoy Nissan, but would also improve Honda’s lot. The competition from China, Korea, and others is growing fiercer by the day, and the efficiencies gained from a merger could help both camps conserve resources and more rapidly develop new models.

[Images: Nissan, Honda]

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#Nissan #Honda #Foxconn #nissanmerger

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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Lorenzo on Dec 20, 2024
Foxconn is a multinational tech company, officially based in Taiwan, but its biggest plant and the majority of its plants are in mainland China. The Japanes government probably stepped in to merge Nissan with Honda to keep Nissan Japanese. Renault is going along, since it is partly owned by the French government, and companies know better than to argue with governments that make the rules.

1 Reply
Geozinger on Dec 21, 2024
Honda will be forced into an arranged marriage with Nissan and Mitsubishi. The latter two will drag Honda down (further) and ultimately the whole arrangement will be absorbed into the Toyota constellation. As I've said before, the Japanese will not let gaijin run their companies.

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