Foxconn Reportedly Seeks Controlling Stake in Nissan

Hon Hai Precision Industry Co., widely known as Foxconn, the Taiwanese manufacturer responsible for producing iPhones and other electronic products, has reportedly approached Nissan Motor Co. with an offer to take a controlling stake, according to an individual familiar with the matter.

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Foxconn, which has been investing significantly in electric vehicle production facilities, is said to be interested in acquiring the entire company, including its lineup of Pathfinders, Sentra sedans, and GTR supercars, rather than limiting its focus to Nissan's plants and equipment. The individual, who requested anonymity due to the confidential nature of the proposal, shared these details.

It remains uncertain whether Nissan has engaged in serious discussions with Foxconn or has dismissed the proposal outright. A Nissan spokesperson declined to comment, and Foxconn representatives were not immediately available to respond.

This news coincides with the announcement of potential merger talks between Honda Motor Co. and Nissan, aimed at strengthening their global competitiveness, especially in the challenging Chinese market. Both automakers are currently facing significant obstacles there. According to reports by the Nikkei, Foxconn's interest in Nissan has intensified the urgency of the discussions between the two Japanese automakers, driven by concerns over a possible takeover by the Taiwanese company.

Honda is also evaluating various strategies, including a capital partnership or the creation of a holding company, as stated by Executive Vice President Shinji Aoyama on Wednesday.

These developments come during a challenging period for Nissan, marked by declining profits, a drop in its share price, a leadership shakeup, and the announcement of a new restructuring plan. Despite these issues, Nissan's stock surged by as much as 24%—its largest increase on record—following news of the potential merger with Honda.

For Foxconn, acquiring a controlling stake in a Japanese company would not be unprecedented. In 2016, the company purchased a two-thirds stake in Sharp Corp., gaining access to its renowned consumer electronics brand, LCD production capabilities, and intellectual property. While Foxconn has gradually reduced its stake, it remains Sharp's largest shareholder.