Taiwan’s Foxconn is considering taking a stake in Nissan as part of potential cooperation talks, Chairman Young Liu said on Wednesday, following the Japanese automaker’s difficulties after backing out of merger discussions with rival Honda.
“If cooperation requires it (purchasing Nissan shares), we will consider it,” Liu told reporters. “But purchasing its shares is not our aim; our aim is cooperation.” He added that Foxconn is also in talks with Renault, Nissan’s largest shareholder, which holds a 36% stake in the Japanese company.
See also: Nissan, Honda End Merger Talks, Will Continue EV Collaboration
Nissan, which has faced challenges in recent years, is reportedly at a crossroads after discussions with Honda to form the world’s No. 4 automaker collapsed due to rising differences between the two companies. The two are expected to formalize the end of their merger talks on Thursday, sources indicated.
This setback occurs amid mounting competition from China’s BYD and other electric vehicle manufacturers, which are reshaping the global automotive landscape.
See also: Foxconn Chairman Clarifies Intent to Cooperate with Nissan, Not Acquire
While Foxconn, best known for manufacturing Apple’s iPhones, has largely been a player in electronics, it is expanding into the electric vehicle sector as part of its diversification strategy.
Foxconn has clarified that it does not aim to become an automotive “brand” but instead will provide design and manufacturing services on a commissioned basis.
