Nissan is exploring new partnerships after terminating merger discussions with Honda, according to a Reuters report citing two sources familiar with the matter. The proposed deal, which would have positioned the combined entity as the world’s third-largest automaker, collapsed after Nissan rejected Honda’s proposal to make it a subsidiary.
Nissan’s CEO, Makoto Uchida, reportedly met with Honda’s Toshihiro Mibe to inform him of the company’s decision to withdraw from negotiations. The breakdown in talks comes at a critical time for the automaker, which is facing industry-wide disruptions due to advancements in electric vehicles (EVs), software-driven cars, and increasing competition from emerging Chinese manufacturers.
In light of these challenges, Nissan is now open to forming alliances beyond traditional automotive partnerships, including with technology companies. One of the sources mentioned that Taiwan’s Foxconn, long-time Apple partner and one the world’s largest contract electronics manufacturer, is among the potential partners that the automaker could consider.
Foxconn has been expanding its EV contract manufacturing business and had previously approached Nissan regarding a potential collaboration. However, Reuters noted that the deal was rejected by the automaker. Notably, Foxconn’s EV division is led by Jun Seki, a former Nissan executive who was once considered a candidate for the automaker’s top position before Uchida was appointed CEO.
(Source: Reuters)
