Nissan, after ending its planned EV merger with Honda, is now looking for a new partner to help it navigate the industry’s transition to electric, software-defined vehicles. One potential partner on the horizon is Apple supplier Foxconn.
Following a board meeting decision to move on from the EV merger with Honda, Nissan is now actively seeking new partnerships. This sudden shift comes after Honda expressed a desire for more control over the proposed alliance. With a combined market cap of approximately $58 billion, the collaboration would have positioned them as the world’s fourth-largest auto group.
The breakdown of the merger with Honda occurred when Honda presented Nissan with a “take it or leave it” offer, requiring them to become a subsidiary. Honda voiced concerns over Nissan’s slow progress on restructuring plans and its ability to execute a successful turnaround strategy. As part of its restructuring efforts, Nissan announced plans to reduce its workforce by around 9,000 employees and cut global production by 20%.
Global production figures from last year revealed a 9% decrease for Nissan, with notable declines in production across various regions. China experienced a 14.7% decrease, followed by the US (-13.3%), the UK (-12.6%), and Japan (-8.6%). In light of these challenges, Nissan is exploring partnerships beyond the traditional automotive and EV sectors, with discussions about collaboration with tech leaders, including Apple supplier Foxconn.
Foxconn, which engaged in talks with Renault about purchasing a portion of its stake in Nissan, has sparked interest in a potential partnership. Jun Seki, Foxconn’s chief strategy officer in the EV business, brings 33 years of experience at Nissan to the table, having risen to the rank of the third senior executive within the company.
Both Nissan and Honda have refrained from commenting on the potential partnerships, with a final decision expected by mid-February. Foxconn has also remained tight-lipped about any potential collaborations. As the companies prepare to report earnings in the coming weeks, more details may emerge.
The question now remains: Can a tech partner like Foxconn assist Nissan in its turnaround efforts? Share your thoughts in the comments below.
