Foxconn seeks cooperation, not acquisition, in talks with Nissan

Foxconn Chairman Young Liu stated during Wednesday's interview that his company seeks business association with Nissan rather than seeking to acquire full ownership because Nissan faces important decisions after Honda partnership breakdowns.  

Liu stated during his interview at New Taipei headquarters that Foxconn would engage in business partnerships but ruled out purchasing Nissan. According to Young Liu the chairman of Foxconn the purpose behind acquiring Nissan shares was to pursue cooperation and Foxconn would take ownership stake in Nissan when required for collaboration purposes.  

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The breakdown of Honda-Nissan merger talks about control and production restructuring has created new uncertainties for Nissan. By combining for USD 60 billion the new automotive company would exceed Toyota in size to become number four in the industry while gaining strength to compete against Chinese EV leader BYD and novel entrants. The negotiations between the companies collapsed because of conflicting opinions regarding facility closures and leadership distribution.  

Nissan continues seeking new partnership options which include working with Foxconn because they are the world's top electronics manufacturing contractor who assembles iPhones for Apple. Headed by motive towards becoming EV component producer and service provider over vehicle brand development - Foxconn expands its operation in the electric vehicle field.  

During an interview Liu announced that Foxconn holds meetings with Renault because the French automaker possesses a major stake in Nissan. The company Renault controls 36% of Nissan and has allocated 18.7% of its equity to a trust in France. The representatives at Nissan and Renault avoided commenting when reached about Liu's statements.  

The financial market responded rapidly to these announcements by letting Nissan shares drop about 6% while Foxconn shares dropped by 1.1%. Analysts have scheduled Thursday as the day both Nissan and Honda will share quarterly earnings numbers as investors continue monitoring Nissan's ongoing search for new strategic alliance prospects.  

While Foxconn continues to push deeper into the EV industry, Liu reiterated that the company has no interest in establishing its own automotive brand. Instead, it seeks to provide contract manufacturing and design services, positioning itself as a crucial player in the global shift toward electric mobility.