December 19, 2024 – Honda and Nissan are currently engaged in talks regarding a potential merger, as reported by Nikkei on Wednesday, in response to a perceived threat of acquisition by Foxconn (Hon Hai Precision Industry).
Although Foxconn is primarily known for its contract manufacturing services, particularly for producing iPhones for Apple, the company announced its entry into the electric vehicle industry in 2019. Foxconn’s attempt to acquire shares in Nissan, which has been ongoing for several months, has garnered significant attention within the industry.
Upon learning of Foxconn’s actions, Nissan held urgent behind-the-scenes discussions to formulate a response. Honda, which established a strategic partnership with Nissan in August of this year, has also expressed concern over Foxconn’s moves. A Honda executive issued a stern warning to Nissan, stating, “If Nissan partners with Foxconn, we will terminate our partnership.” Honda fears that the partnership, which is central to its growth strategy, could be undermined by Foxconn’s actions.
Previous reports indicate that Nissan, Honda, and potentially Mitsubishi Motors are exploring a structure that would support significant future investments in autonomous driving and electric vehicle batteries.
If these three companies unite, they could form the third-largest automotive group globally, with annual sales exceeding 8 million vehicles, putting them in a strong position to compete with Tesla and Chinese electric car manufacturers.
