Nissan to end the discussions on the merger of Honda, Foxconn back on the table

Nissan would have chosen not to have merger talks with Honda and are now looking for new partners

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Nissan would have been withdrawn from merger with Honda after the two car manufacturers did not overcome the terms. Now, Nissan already covers a new partner, a potential candidate being Foxconn, the Taiwanese technology giant best known to assemble iPhones.

Plus: Nissan cancels a small electric SUV built by US, compared to

Honda and Nissan initially signed a memorandum of understanding in December 2024, laying the foundations for a possible merger, with plans to announce more details by mid-February. The agreement was supposed to include the creation of a joint venture by August 2026. However, the reports suggest that things collapsed when Nissan fell on Honda’s proposal to effectively become one of its subsidiaries, an idea which was not suitable for the management of Nissan.

Nissan takes the catch

According to the Japanese media NikkeiNissan CEO Makoto Uchida personally informed Honda CEO Toshihiro Mibe of the decision at a meeting in Tokyo on Thursday morning. In the meantime, Kyodo News Reports that the Nissan board of directors had already made the last call one day earlier, at a meeting on Wednesday.

Despite the collapse of complete merger talks, Honda did not exclude future collaboration with Nissan, just on a smaller scale. Sources indicate that the two companies can always work together on EV software and the development of batteries, although the details remain vague.

Following reports on the end of the merger talks between Nissan and Honda, a Renault spokesperson said they “vigorously defend the interest of the Renault group and its stakeholders”.

However, it should be noted that Honda and Nissan have made no official declaration in this area, stating their initial plan to announce the result of their talks in mid-February.

Looking for a new partner

With the merger of $ 60 billion being one thing in the past, Nissan is now looking for an alternative solution that could help him stay afloat after recent financial difficulties. Citing two anonymous sources, Reuters reports that the car manufacturer is open to work with technological companies, Foxconn being a serious candidate.

Plus: Honda developing a sub-° of $ 30,000 for North America

According to the report, Foxconn had expressed interest in acquiring Nissan in December, despite the merger talks then active with Honda. Nissan would have rejected the offer, but it seems that the company is still considering collaboration with the iPhone manufacturer.

Foxconn already has an EV subsidiary called Foxtron, led by Jun Seki, who worked for Nissan as senior executive and CEO candidate. A possible collaboration with Nissan would help the Taiwanese company to develop its automotive activities. At the same time, Nissan could benefit from the capital of Foxconn, after being forced to reduce 9,000 jobs and reduce production by 20%.