Foxconn Floats Partnership with Struggling Nissan

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Struggling Nissan, who was Japan’s second largest automaker after Toyota until 2020, continues to be in the news. As talks have broken down with Honda, who it was announced would acquire Nissan several weeks ago, Foxconn appears to be joining the discussing, or trying. 

Taiwan’s Foxconn has held the title of world’s largest contract electronics manufacturer for decades and wants to have larger participation in the growing electronic vehicle (EV) market. Thus, talks with both Nissan (and French automaker Renault) ensue, but the word being used is “cooperation,” not “acquisition,” with Foxconn saying they would be willing to buy shares in Nisan if that is what it takes.

Again, at a crossroads after the breakdown of talks with Honda, the now 4^th ranked car maker in Japan may need to be open to alternative solutions. Nissan is rumored to have been plagued with management inefficiencies for year. One wonders what options Nissan will be left with if they do not act quickly to choose a sound and stable course to chart their uncertain future.

If Foxconn is successful in creating a direct partnership with Nissan, this will be the latest change in the global auto industry, which is under big threats from Chinese BYD and other, newer EV entrants into the market.