Foxconn Interested in Nissan Takeover Amidst Honda Merger Talks

Taiwanese tech giant Foxconn has reportedly expressed interest in taking over Nissan amidst merger talks with Honda.

In case you missed it, Nissan is in deep financial trouble, with previous reports suggesting that the company only has 12 to 14 months left and is currently entering survival mode. While talks on a possible merger with long-time rival Honda are happening in the background, it seems there’s a third party, in the form of Taiwan-based tech giant Foxconn, that is also interested in taking over the reins at the Yokohama-based marque.

According to The Wall Street Journal, sources “familiar with the matter” say the tech giant, who is known for its role as the largest contract manufacturer for Apple’s iPhones, has been actively “discussing acquiring Nissan,” particularly both its vehicle manufacturing and design arms. If such a deal is about to take place, then we’re about to see one of the biggest twists in the global automotive industry, while bringing Foxconn’s position in this industry further up.

The Foxtron Model D EV MPV is one of the many concept vehicles made by Foxconn, although none of them have hit the production line just yet.

While it is known for contract manufacturing iPhones and many other consumer electronic products, Foxconn is definitely no stranger to the automotive industry, as the tech giant is actively involved in some automotive-related projects, including several futuristic concept EVs such as the Foxtron Model D concept EV MPV here, although none of them have hit the production line, for now.

Leading Foxconn’s ambitious automotive venture is former Nissan exec Jun Seki, who just spearheaded the company’s latest investment worth $250 million into a Vietnamese industrial park focused on making EV components. This big investment, alongside the possible takeover of Nissan, could finally be the signs that Foxconn is ready to dive deep into the automotive industry.

From The Wall Street Journal report, we’ve also been told that Foxconn plans to produce vehicles in a similar fashion to how it builds iPhones for Apple, meaning that it’ll likely take similar contract manufacturing roles, given Foxconn’s limited experience in vehicle manufacturing and designing. Should this takeover be true, Foxconn will be looking forward to leaning on Nissan’s strength in vehicle chassis and body manufacturing, thus accelerating its process to become a full-fledged automaker in the future.

While Foxconn’s plan with the Nissan takeover may sound ambitious and all, some reports also suggest that the tech giant’s interest in the Japanese automaker might just be a ruse after all, with the hopes that it will further accelerate the merger talks with Honda. Given that Foxconn’s plan dictates a whole takeover from Nissan, perhaps it’ll be enough to put some sweat on those Honda executives in making their merger decisions faster.

Should Honda’s merger plan with Nissan become fruitful, this means that the whole Japanese automotive industry is being mostly controlled by two companies, namely Honda-Nissan and Toyota, who hold stakes in brands like Suzuki, Subaru, Mazda, and many more.