Categories: Cars

Foxconn Will Put Its Nissan Acquisition Ambitions On Hold While The Automaker Negotiates With Honda

foxconn will put its nissan acquisition ambitions on hold while the automaker

The news that Honda and Nissan are discussing a merger is certainly worth all the attention it’s getting, but one of the more interesting parts of the story relates to a third company. Foxconn – you know, the company that builds iPhones – was interested in acquiring Nissan but is putting that effort on hold while it negotiates with Honda.

foxconn will put its nissan acquisition ambitions on hold while the automaker

We don’t know how far Foxconn got with Nissan or if any serious discussions had taken place prior to the automaker’s rumored talks with Honda. Foxconn had sent a group to chat with Renault, which holds a 36 percent stake in Nissan, prior to its decision to pause acquisition efforts.

The company, which has long been an Apple manufacturing partner, hasn’t been shy about its desire to move into the electric vehicle space. Though it’s taking a step back while the two Japanese automakers discuss a merger, it isn’t giving up entirely. A source told Automotive News that Foxconn would take a “wait and see” approach to the situation, linking a decision to move forward to the success of the Nissan-Honda talks.

Nissan’s sales have tumbled, and dealer inventory has ballooned, putting it in a precarious situation heading into 2025. A merger would help buoy Nissan, but would also improve Honda’s lot. The competition from China, Korea, and others is growing fiercer by the day, and the efficiencies gained from a merger could help both camps conserve resources and more rapidly develop new models.

[Images: Nissan, Honda]

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Source: The Truth About Cars

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