Foxconn Seeks Cooperation, Not Acquisition Of Nissan

The planned merger between Nissan and Honda will not proceed, and official announcements are set to come soon. This puts ailing Nissan back to square one, but it may have one lifeline to consider...

As mentioned, the proposed Nissan-Honda merger has been axed, albeit unofficially – official announcements by both firms are expected soon. This puts ailing Nissan back to square one whereby its future is in serious doubt, but it seems there might be hope still.

According to a recent report by Reuters, Taiwanese tech giants Foxconn, initially rumoured to have an interest in acquiring the Japanese automaker, is back in the picture with a lifeline. However, what its chairman Young Liu expressed comes as a bit of a surprise.

Speaking with reporters recently, the Taiwanese exec revealed that Foxconn seeks to cooperate with Nissan instead of acquiring it. In turn, this should help the firm expand its electric vehicle (EV) business, which is currently led by former Nissan exec Jun Seki.

Taiwanese tech giants Foxconn, initially rumoured to have an interest at acquiring Nissan prior, have come out saying that it's very keen to pursue a cooperation deal with the Japanese automaker instead.

More precisely, Foxconn is primarily keen on providing design and manufacturing services through which. Adding to which, various sources allege that Nissan is open to working with Foxconn, but we reckon an announcement for which won’t come so soon.

Additionally, the cooperation aim means Foxconn is reportedly not interested in acquiring a stake in Nissan, but chairman Liu also did not oppose to the notion “if there’s an operational need” to do so.

For the uninitiated, Foxconn is renowned as a manufacturer of various electronic devices, namely the Apple iPhone. Despite its tech roots, it wouldn’t be the first tech firm to venture in EVs, as proven by fierce Chinese rivals Xiaomi.

Foxconn could be exactly what Nissan needs, given it's fierce desire to maintain its brand autonomy - its merger with Honda was called off over Honda's calls to place Nissan as a 'subsidiary'.

Clearly, a partner like Foxconn can only bring more benefits to Nissan which, as alleged by sources close to the matter, elected to call off the planned merger over disagreements at being positioned as a ‘subsidiary’ of Honda – Nissan execs adamantly seek to retain brand independence.

Adding to the challenge were reports of Honda pushing for Nissan to first triple its profits in just over one fiscal year, as well as buying back shares from French automaker Renault. Clearly, Nissan is unable to deliver either and, above all, it cannot stomach losing brand autonomy.

Nevertheless, with Foxconn laying out a possible lifeline in the form of a potential cooperation deal, perhaps it’s an offer that Nissan ought to seriously consider. What do you folks reckon then? Share your take in the comments below, as well as our social media pages…