Nissan Seeks New Partner After Honda Merger Collapse

After the failure of its planned merger with Honda in the electric vehicle sector, Nissan is now seeking a new partner to help it recover and maintain its position in the rapidly evolving automotive market, which is shifting toward electric and software-driven vehicles. Among the potential options, Nissan may turn to Foxconn, a key supplier to Apple.

During a board meeting held on Wednesday, Nissan decided to abandon the idea of merging with Honda in the electric vehicle field. This sudden decision came after Honda expressed its desire for greater control within the proposed partnership. According to informed sources, Nissan is now actively searching for new partners to bolster its efforts in transitioning to electric vehicles.

Nissan"s CEO, Makoto Uchida, met with his counterpart at Honda on Thursday morning, where both parties confirmed the termination of merger talks. This alliance, with a combined market value of approximately $58 billion, was expected to create the world"s fourth-largest automotive group.

The merger deal collapsed after Honda presented Nissan with a new offer that would grant it greater control, describing it as a "take it or leave it" proposition. Reports indicated that Honda was concerned about the slow pace of Nissan"s transformation and criticized the company for not moving quickly enough in its restructuring plans.

As part of its transformation strategy, Nissan announced plans to reduce its workforce by around 9,000 employees and cut global production by 20%. Last year, the company experienced a 9% decline in global production, with significant drops in all regions except Mexico. China led the decline with a 14.7% reduction in production, followed by the United States (-13.3%), the United Kingdom (-12.6%), and Japan (-8.6%).

According to sources, Nissan"s new partnerships may include leaders in technology outside the electric vehicle industry. Board members have also discussed the possibility of collaborating with Foxconn, which previously met with Renault, Nissan"s 36% shareholder, to discuss acquiring a portion of its stake in the Japanese automaker.

This move has sparked preliminary discussions between Nissan and Foxconn, especially given the presence of Jun Seki, Foxconn"s Chief Strategy Officer for its electric vehicle business, who previously worked at Nissan for 33 years and held prominent leadership positions, including the role of the company"s third-highest executive.