Foxconn Executive in France for potential Nissan stake acquisition talks with Renault

TAIPEI

Taiwan's leading contract manufacturer Foxconn has dispatched a senior executive to France for negotiations regarding a potential acquisition of Nissan Motor shares from Renault, according to Taiwan's Central News Agency. The development marks a significant move in the ongoing restructuring of global automotive alliances.

Jun Seki, who previously held an executive position at Nissan and currently heads Foxconn's electric vehicle operations, is reportedly meeting with Renault officials in France. Sources familiar with the discussions have confirmed that Foxconn is actively pursuing talks to acquire at least a portion of Renault's shareholding in Nissan.

The timing of these discussions is particularly noteworthy as Nissan is simultaneously engaged in separate talks with Honda, its longtime Japanese competitor, regarding potential enhanced cooperation that could extend to a merger. These parallel negotiations come as Nissan grapples with significant financial and strategic challenges, which recently led to the announcement of a substantial £2.1 billion cost reduction programme.

The potential stake sale to Foxconn could represent a pivotal shift in the automotive industry's landscape, particularly as traditional manufacturers navigate the transition towards electric vehicles and new technology integration. Foxconn, primarily known for manufacturing consumer electronics including Apple's iPhone, has been actively expanding its presence in the electric vehicle sector.

When approached for comment, Foxconn did not provide an immediate response to the reports. Similarly, attempts to reach Renault for comment were unsuccessful, whilst Nissan declined to offer any statement regarding the ongoing discussions.

The current talks underscore the broader transformation occurring within the global automotive sector, where traditional industry boundaries are increasingly blurred by the entry of technology companies into vehicle manufacturing. Foxconn's interest in acquiring a stake in Nissan through Renault suggests a strategic move to strengthen its position in the automotive industry.

This development could potentially reshape one of the automotive industry's most significant alliances, as Renault has historically been Nissan's largest shareholder. Any change in this ownership structure could have far-reaching implications for both companies' strategic directions and their existing partnership.

The concurrent discussions between Nissan and Honda further emphasise the complex nature of the automotive industry's current state, where manufacturers are increasingly seeking partnerships and consolidation to address technological challenges and market pressures. These parallel negotiations highlight the industry's ongoing evolution and the strategic importance of forming new alliances to remain competitive in an increasingly technology-driven market.