iPhone maker Foxconn interested in Nissan, merger talks underway

Shortly after reports emerged that Honda and Nissan were in talks to merge, sources said Taiwanese iPhone maker Foxconn has expressed interest in buying a stake in Nissan.

Foxconn, best known as the Apple manufacturing giant, is reportedly keen on acquiring Nissan’s core assets, particularly its car manufacturing and design expertise. Foxconn, which is pursuing its electric vehicle ambitions under former Nissan executive Jun Seki, has pledged to invest $250 million in a Vietnam industrial park focused on electric vehicle components. Although the company has previewed several promising electric vehicle concepts, none have yet made it to the production line.

Read: Apple iPhone maker Foxconn’s latest electric car is a Pininfarina-designed minivan

According to the Wall Street Journal, Foxconn plans to produce cars in a manner similar to how Apple produces iPhones, with the company outsourcing car design and production to Foxconn. Although the company has limited expertise in vehicle chassis and body building, the partnership with Nissan could help accelerate its plans to start building cars.

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While talks between Honda and Nissan are still ongoing, there is a possibility they could form a new holding company to share resources. While Renault did not comment specifically on merger talks with Honda, a spokesperson for the French brand did say it “supports Nissan’s efforts to restore business conditions (sic).” The Financial Post added that the Honda deal could help protect Renault from Nissan’s financial crisis.

Interestingly, Foxconn’s reported interest in Nissan may have accelerated merger talks with Honda amid concerns that the Taiwanese manufacturing giant could try to take over the troubled car brand.

A merger between Nissan and Honda could include Mitsubishi and consolidate much of the Japanese auto industry into two companies, Nissan Honda and Toyota, as well as all the different companies in which they have stakes, including Suzuki, Subaru, and Mazda.