The status of the Honda and Nissan merger will be revealed upon the announcement of the two companies' quarterly earnings. Reports of the deal's collapse emerged last week, once again putting Nissan's future in jeopardy. However, Foxconn may be the struggling automaker's lifeline, but it has no interest in buying Nissan — something that might be more compatible with the company's needs.
According to Reuters, Foxconn chairman Young Liu said the company wants to work with Nissan. The electronics company aims to expand its business into electric vehicles, led by former Nissan executive Jun Seki, but is interested in providing design and manufacturing services. Nissan is said to be open to the possibility of working with Foxconn, but no announcement can be expected until the end of the agreement with Honda is officially announced.
Although Foxconn is not interested in buying a stake in Nissan, Liu said it is not opposed if necessary for the operation. Foxconn makes a variety of electronics, including the Apple iPhone, and this isn't the first time the company has dabbled in EVs. Chinese phone maker Xiaomi launched SU7 in 2024.
Details continue to emerge about the alleged failed deal between Honda and Nissan, which former Nissan CEO Carlos Ghosn called a "desperate move." According to another Reuters report, Nissan wanted more or less equal treatment in the talks, but Honda wanted Nissan to cut more employees, resulting in a disagreement between the two. Honda also reportedly amended the terms of the deal to make Nissan a subsidiary, because it believed Nissan was not concerned enough with its problems.
A partner like Foxconn could allow Nissan to maintain its independence, but the automaker faces many challenges. Last year, it cut its profit forecast by 70%, cut 9,000 jobs, reduced global production capacity, and sold part of its stake in Mitsubishi.
Nissan also asked its dealers to sell cars at a loss while cutting production of the Rogue, its best-selling model in America and the nation's ninth best-selling car last year.
Although crossover sales in the U.S. fell 9.5%. last year, the brand's total sales increased by 3.5%. Sales of the Versa and Sentra, its least expensive models, rose significantly, with 71.7% and 39.8% year-over-year increases, respectively. However, these are not enough to counter the decline in global sales, rising costs, intensifying competition, and an uncertain future.
