Foxconn Wants to Work With Nissan, Not Acquire It

We should know more about the state of the Honda-Nissan merger by tomorrow when the two companies announce their quarterly earnings. Reports of the deal’s demise surfaced last week, again putting Nissan’s future in question. However, Foxconn could serve as the potential lifeline the company needs, except the Taiwanese electronics maker isn’t interested in acquiring the struggling automaker, which might better jive with Nissan’s needs.

According to Reuters, Foxconn chairman Young Liu told reporters today that the company is seeking to cooperate with Nissan. The electronics company wants to expand its electric vehicles business, which former Nissen executive Jun Seki is leading, but it’s primarily interested in providing design and manufacturing services. Nissan is allegedly open to working with Foxconn, but we don’t expect any announcements until it officially announces the end of the Honda deal.

While Foxconn isn’t interested in buying a stake in Nissan, it’s also not opposed to it if "there’s an operational need," Liu said. Foxconn makes an assortment of electronics, including the Apple iPhone, and it wouldn’t be the first such company to venture into EVs. Chinese phone maker Xiaomi launched the SU7 in 2024.

Details about the rumored breakup of the Honda-Nissan deal, which ex-Nissan CEO Carlos Ghosn called a "desperate move," continue to emerge. According to another Reuters report, Nissan wanted nearly equal treatment in the discussions, while Honda wanted Nissan to cut more staff, putting the pair at an impasse. Honda also allegedly revised the deal’s terms to make Nissan a subsidiary, believing Nissan wasn’t sufficiently worried about its struggles.

A partner like Foxconn could allow Nissan to retain its independence, but the automaker is facing some significant hurdles. Last year, the automaker cut its profits forecast by 70 percent, eliminated 9,000 jobs, reduced global production capacity, and sold a portion of its stake in Mitsubishi.

The automaker also asked its dealers to sell vehicles at a loss while scaling back Rogue production, its best-selling model in America by a wide margin and the country’s ninth-best-selling vehicle overall last year.

Sales for the popular crossover were down 9.5 percent last year in the United States, but the brand’s overall sales were up 3.5 percent. The Versa and Sentra, the brand’s two cheapest models, saw sales jump 71.7 and 39.8 percent year-over-year, respectively. But those don’t rake in the huge profits needed to face declining global sales, rising costs, increasing competition, and an uncertain future.