In a surprising move that could save struggling Japanese automaker Nissan Motor, Young Liu, Chairman of Taiwanese company Hon Hai Precision Industries, known as "Foxconn," announced that his company is ready to acquire France's Renault's stake in its Japanese partner Nissan.
Foxconn Aiming for Cooperation, Not Acquisition Liu confirmed in press statements that Foxconn is communicating with both Nissan and Honda Motor regarding potential collaboration, indicating that the company had previously considered acquiring Renault's 36 percent stake in Nissan. However, Liu clarified that Foxconn's main goal is to cooperate with Nissan, not to acquire it, emphasizing that purchasing shares in Nissan would only be considered if there is an operational need for it.
Strategic Shift for the Electronics Giant This move is part of Foxconn's efforts, the largest manufacturer of iPhones and electronic devices for global brands, to expand into new areas such as electric vehicles, in order to offset the slowdown in smartphone sales.
Uncertain Future for the Nissan-Honda Alliance It is worth noting that Foxconn had taken a wait-and-see approach when Honda and Nissan were working on a plan to merge their operations, but the two Japanese companies are currently moving towards ending alliance discussions, which opens the door for Foxconn to play a larger role in the future of the Japanese automotive industry.
Could This Be Nissan’s “Lifeline”? The question remains: could this step be a “lifeline” for struggling Nissan? The answer to this question will become clear in the coming months, as it will show how serious Foxconn is in its endeavor and how willing Nissan is to collaborate with it.
