As merger talks between Honda and Nissan appear to have stalled or broken down, Taiwan’s Hon Hai (better known as Foxconn, contract manufacturer for Apple) could be eyeing an opportunity to get closer to struggling Nissan.
Media reports say Hon Hai Chairman Young Lui has said that the company has approached both Nissan and Honda over potential cooperation.
The Japan Times reported that Lui also said Hon Hai will announce a Japanese customer for its electric vehicle contract manufacturing business within the first quarter.
Reuters reported that Young Lui said the company’s aim is cooperation with Nissan rather than outright acquisition. However, analysts believe Hon Hai could take a stake if that is needed to progress collaborative strategies and aims.
Renault remains Nissan’s largest single shareholder with a 35.7% stake, with the French automaker looking to continue selling down its stake.
Hon Hai has been watching on as merger talks between Honda and Nissan recently broke down, leaving their merger plans stalled. Analysts say that could open the door for Hon Hai to get closer to struggling Nissan, which needs a strong ‘anchor’ partner after its alliance with Renault has gone into reverse gear.
Nissan considers pulling out of merger with Honda
"As competitive pressures in the auto industry build, especially in developing critical low-cost electric vehicles, Nissan needs a strong partner," said GlobalData analyst Justin Cox. "If that's not going to be Honda, then Hon Hai may see an opportunity, especially given its automotive industry ambitions. Taking a stake may be a way to smooth the pathway with Nissan's board to that strategically important future relationship."
Remarks from Liu suggest a cautious approach. "Purchasing its [Nissan’s] shares is not our aim; our aim is cooperation," Liu said, according to Reuters.
Besides the speculation over Foxconn’s future relationship with Nissan, some reports also suggest that it has been in contact with Honda.
Liu has previously said Foxconn would not seek to become an automotive brand or OEM, but would provide commissioned design and manufacturing services.
