In late 2024, Nissan and Honda signed a memorandum of understanding to discuss a merger of the two companies, but the merger appears unlikely to happen. There are many reasons why the story of merging these two companies was started, and one of them is the protection of domestic manufacturers from foreign takeovers. Some believe Japan’s Ministry of Economy, Trade and Industry (METI) pushed the merger to stop rumors of a takeover of Nissan by Taiwanese technology company Foxconn. Now the Taiwanese company has said it is open to talks with Nissan.
Foxconn’s electric vehicle business is led by former Nissan CEO Jun Seki, who was once seen as a candidate to become the automaker’s CEO before the job went to current boss Uchida.
Nissan has said it is open to cooperation with Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, although the Japanese manufacturer has previously ruled out talks with the Taiwanese company. Foxconn, which makes Apple products, was looking to expand its electric vehicle manufacturing business and saw Nissan as a partner.
Nissan had hoped to merge with Honda to become the world’s third-largest automaker, but talks have been complicated by growing differences and Honda’s push to turn Nissan into a subsidiary, Reuters reported.
Great pressure, primarily from Chinese companies that are rapidly taking control of the largest markets, calls into question the future of many manufacturers, including Nissan. They badly need a partner, and have already announced plans to lay off 9,000 workers and cut 20 percent of their global capacity.
Source: Reuters
