Foxconn Emerges As Potential Nissan Partner After Honda Deal Fails

Nissan, a leader in the electric vehicle (EV) industry with its Leaf model, is reportedly seeking a new business partner for its electric vehicle (EV) operations, as its planned collaboration with Honda appears to have fallen through, a source close to the matter told Bloomberg.
According to the source, Foxconn, the Taiwanese tech company best known for assembling iPhones, is one possible partner Nissan is currently looking at. Given the high expenses associated with building electric vehicles from the ground up, Nissan's quest for a new partnership is a reflection of the fierce competition and substantial investments needed to thrive in the EV industry.


A memorandum of understanding was first signed by Honda and Nissan in December 2024, setting the stage for a potential merger. By mid-February, more information is expected to be revealed with the proposed establishment of a joint venture by August 2026.
However, both Japanese automakers have soured, with Nissan refusing to become a subsidiary of Honda, preferring to be an equal partner. This is despite Nissan's risky financial situation, with industry experts claiming it has less to offer the collaboration than Honda.

The automaker's net income fell 94% in the first half of the fiscal year, and the company has announced plans to lay off 9,000 employees and reduce manufacturing capacity by a fifth. According to Bloomberg, its deteriorating financial state is unlikely to attract many potential suitors.

Nissan nevertheless maintains extensive manufacturing operations and a strong brand identity despite the challenges it faces. Foxconn is rumoured to have approached the Japanese carmaker in December about purchasing stock in the firm, but it decided to halt its interest after learning that Nissan was negotiating a merger with Honda.

People familiar with the situation told Bloomberg that Foxconn is taking its time. If Honda and Nissan's talks break down, Foxconn may be waiting in the wings with its own proposal.