Foxconn Reportedly in Talks to Buy Nissan to Boost its EV Business

Less than a day after news broke that Nissan could merge with Honda, it has emerged that Taiwanese contract manufacturing giant Foxconn could also be interested in acquiring the struggling Japanese carmaker. Foxconn, which is formally known as Hon Hai Precision Industry, is reported to have approached Nissan to buy out a majority stake. The news was reported by local media outlet Diamond Online, via Bloomberg. Neither Nissan nor Foxconn have confirmed the report or made any statements about their interest in pursuing any such deal, or how it might relate to the anticipated merger.   

The news of Honda and Nissan potentially merging comes as traditional carmakers face massive competition from newer EV-focused manufacturers, particularly Chinese ones. Nissan announced global workforce reductions last month, and has cut its factory targets as sales slow down. Merging with fellow Japanese company Honda would create the world’s third-largest automotive conglomerate. The two companies had previously entered a strategic partnership to strengthen their positions in the EV market. A merger announcement could come within this week, although negotiations about establishing the structure of a new holding company and each party’s equity stake.

Nissan also has financial ties to Mitsubishi Motors Corp in Japan and France’s Renault SA, which would need to be involved in any deal. According to Japan’s Nikkei news outlet, talks between the Japanese carmakers might have been accelerated because of fears of a foreign takeover after Foxconn’s proposal.

Nissan’s share price surged by 23.7 percent, its highest ever jump, after the news of its potential merger with Honda broke. 

Foxconn subsidiary Foxtron has its own electric car platforms and offers fully customisable vehicles to its contract partners which include the now-bankrupt Fisker Inc in the USA and Luxgen in Taiwan. The company recently showed off its Model U minibus and Model D MUV, joining its Model C crossover SUV. Earlier this year, Foxconn acquired the iconic Japanese electronics giant Sharp, which also debuted an EV concept, the LDK+ “extended living room” with integrated AI.