Nissan is urgently seeking a new partner for its electric vehicle (EV) strategy after its planned merger with Honda fell through. The Japanese automaker is now exploring alternative collaborations to strengthen its position in the evolving industry of software-defined electric mobility. One potential candidate under consideration is Apple supplier Foxconn.
Nissan Moves Beyond Honda
At a board meeting on Wednesday, Nissan formally decided to abandon its EV partnership discussions with Honda. The split reportedly stemmed from Honda’s demand for greater control over the joint venture. According to sources familiar with the matter, Nissan CEO Makoto Uchida met with Honda’s leadership on Thursday to confirm the decision to terminate negotiations.
Had the merger proceeded, the combined entity—valued at approximately $58 billion—would have become the fourth-largest automotive group globally. However, Honda’s ultimatum, which proposed that Nissan become a subsidiary, led to the breakdown of talks. Honda also expressed concerns over Nissan’s restructuring efforts, citing a perceived lack of urgency in its turnaround strategy.
Nissan’s Turnaround Efforts and Declining Production
As part of its restructuring, Nissan has announced plans to cut approximately 9,000 jobs and reduce global production by 20%. The automaker’s global output declined by 9% last year, with significant drops in key markets. China experienced the sharpest decline at 14.7%, followed by the United States (-13.3%), the United Kingdom (-12.6%), and Japan (-8.6%). Mexico was the only market where Nissan maintained stable production levels.
Exploring New Partnerships
In response to the failed merger, Nissan is reportedly considering partnerships beyond traditional automakers. Several board members have discussed the possibility of collaborating with tech companies, including Foxconn, a leading electronics manufacturer and key Apple supplier.
Foxconn has already engaged in discussions with Renault, which owns a 36% stake in Nissan, regarding a potential investment in the Japanese automaker. The connection is further reinforced by Jun Seki, Foxconn’s chief strategy officer for its EV division, who previously worked at Nissan for 33 years and ascended to the position of senior executive.
Awaiting Key Decisions
Neither Nissan nor Honda has issued an official statement regarding the next steps, though a final decision is expected by mid-February. Foxconn also declined to comment on any potential collaboration. Both Nissan and Foxconn are scheduled to release their earnings reports next week, which may provide further insights into their strategic plans.
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