Foxconn Approaches Nissan for Potential Controlling Stake

Investing.com – Foxconn (SS:601138) has approached Japanese carmaker Nissan Motor Co., Ltd. (TYO:7201) regarding a potential controlling stake, according to a Bloomberg report from Wednesday. This move aligns with the Taiwanese tech giant's aggressive strategy to expand in the electric vehicle (EV) sector.

Foxconn, formally known as Hon Hai Precision Industry Co Ltd (TW:2317), appears interested in more than just Nissan’s manufacturing capabilities; they are likely eyeing Nissan’s range of automobile models as well, the report indicates.

The Taiwanese firm has significantly invested in EV production and appointed Jun Seki, a former executive from Nissan and Nidec, as the chief strategy officer of its EV division in 2023. Additionally, in late 2023, Foxconn spun off its EV unit, Foxtron Vehicle Technologies Co Ltd (TW:2258).

Nissan faces heightened competition from EV manufacturers, particularly in China, where companies are engaged in fierce price wars to gain market share in the world's largest auto market.

Reports have also emerged that Nissan and Honda (NYSE:HMC) Motor Co Ltd (TYO:7267) are considering a merger to navigate challenging market conditions. They may also include Mitsubishi Motors Corp. (TYO:7211) in this potential collaboration.