The much-anticipated collaboration between Honda and Nissan has officially hit the brakes. What was supposed to be a game-changing partnership, potentially making them the world’s third-largest automaker, has now unravelled due to disagreements over leadership and control. With Honda and Nissan parting ways, Nissan is already exploring new avenues—and it seems the tech world might just be its next destination.
Nissan & Foxconn: An Unlikely but Strategic Alliance?
According to sources cited by Caricarz, Nissan is now considering a potential partnership with Foxconn, the tech giant best known for assembling iPhones. But why would an automaker team up with a tech firm? Well, the answer lies in the electric vehicle (EV) race.
Nissan has long been a major player in the EV game, thanks to its pioneering Leaf model. However, staying ahead in this rapidly evolving market is no cheap endeavour. Developing cutting-edge EV technology, securing battery supplies, and meeting stringent sustainability targets require deep pockets. That’s where Foxconn comes in—bringing its tech expertise and production efficiency to help Nissan stay competitive.
The Fallout: Why Honda & Nissan Called It Quits
Honda and Nissan first signed a memorandum of understanding in December 2024, setting the stage for a possible joint venture. By mid-February 2025, further details were expected to be ironed out, with a full-fledged collaboration planned for August 2026. However, things took a sharp turn when Nissan refused to be absorbed as a subsidiary under Honda, insisting on an equal partnership.
Industry analysts argue that Nissan’s shaky financial health left it with less bargaining power. The company reported a staggering 94% drop in net income in the first half of the fiscal year and has announced plans to lay off 9,000 employees while cutting manufacturing capacity by 20%.
Bloomberg reports that Nissan’s deteriorating finances make it a less attractive partner for automakers looking for solid financial footing.
Foxconn Watching From the Sidelines
Despite its struggles, the automaker still holds significant manufacturing capabilities and a globally recognised brand. Interestingly, Foxconn reportedly approached Nissan in December 2024, expressing interest in purchasing shares. However, the tech giant put its plans on hold upon learning that Nissan was in merger talks with Honda.
Now, with those talks collapsing, Foxconn may be waiting for the perfect moment to strike. According to sources familiar with the situation, the company is carefully weighing its options, possibly positioning itself as Nissan’s next major ally in the EV revolution.
With the global automotive industry undergoing a massive shift towards electrification, the competition has never been fiercer. If both the company join forces, it could signal a bold new chapter for both companies. For now, all eyes are on Nissan—will it secure a lifeline with Foxconn, or does it have another trick up its sleeve? Stay tuned!
Source: Caricarz
Other posts by Keran
