Nissan is open to new partnerships, including with technology firms, after calling off merger discussions with Honda, two people familiar with the matter said on Thursday, with Taiwanās Foxconn among potential candidates.
The Japanese automaker, which has been implementing a turnaround strategy, opted to withdraw from negotiations with Honda after the latter proposed making Nissan a subsidiary, a third source said. “A consensus was reached on Nissan’s side that the talks could not proceed under that proposal,” the person added.
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Foxconn, the worldās largest contract electronics manufacturer and a growing player in the EV sector, previously approached Nissan about a potential collaboration but was turned down, Reuters reported in December. The companyās EV business is led by Jun Seki, a former Nissan executive who was once considered a candidate for the automakerās top role.
Nissan and Honda had signed a memorandum of understanding in December to explore an integration under a holding company. However, talks became increasingly difficult due to strategic differences, multiple sources said. Japanese public broadcaster NHK reported that Honda remains firm in its stance that it would not agree to an integration unless Nissan became a subsidiary.
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Nissan is expected to formalize its decision to withdraw from the memorandum at a board meeting ahead of its third-quarter earnings announcement next week, one of the sources said.
The breakdown of discussions raises questions about Nissanās next steps as it continues efforts to restructure its operations, including a plan to cut 9,000 jobs and reduce global production capacity by 20%.
Source: Reuters