Now that the Honda-Nissan merger is off the table, the latter’s might find its long-term future in a vulnerable position. But as one door closes, another one opens, likely attrating a whole slew of companies interested in merging or collaborating with the embattled automaker.
One of the potential suitors is Foxconn, and it might the one that could get Nissan out of the doldrums.
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But why did the Honda-Nissan merger collapse? Insiders will likely say the sore point was the alleged plan of Honda to turn Nissan into a subsidiary, effectively taking control its rival. The two were supposed to finalize the details of the supposed merger by the middle of the year, but terminated the deal before things could even fall into place.
With that, Foxconn could swoop in to help Nissan. The Taiwanese electronics giant has an offer that Nissan might not be able to resist. It might even be music to the latter’s ears.
Per Foxconn chairman Young Liu, he said “Purchasing [Nissan's] shares is not our aim; our aim is cooperation.” Liu added that Foxconn has no intention of entering the carmaker business. Instead, it aims to provide design, engineering, and manufacturing services within the automotive sector.
Based on what Liu said, at least, Nissan could be happy with Foxconn’s intentions. The company gets to keep control of its own assets, while its partner has no conflict of interest given there are no plans to build Foxconn-branded vehicles. Of course, it will depend on Nissan’s board and, perhaps more crucially, the Japanese government.
