iPhone maker interested in Nissan stake as Honda-Nissan deal collapses
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The collapse of merger talks between Honda and Nissan could open the door for iPhone manufacturer Foxconn to make a big play in automotive production.
Why it matters: Foxconn has been angling for years to translate its consumer electronics production expertise into EV manufacturing.
Catch up quick: Honda and Nissan officially terminated merger talks Thursday, which had initially contemplated the rival Japanese automakers becoming part of the same holding company.
- Nissan was reportedly irked when Honda — the bigger and more financially stable company — flipped the script and proposed that Nissan become one of its subsidiaries.
State of play: Nissan is now in a particularly precarious position, facing evaporating profits after falling behind in the global race for electric vehicles and slipping in the critical Chinese market.
- The company reported Thursday that its net income fell 98% in its most recent quarter, compared with a year earlier.
Between the lines: This puts Nissan in play for a move by Foxconn.
- Foxconn chairman Young Liu told reporters in Taiwan earlier this week that the company would consider acquiring French automaker Renault's 36% stake in Nissan if it facilitates further collaboration with the Japanese automaker.
- Meanwhile, Nissan said it will "actively explore new partnerships" while simultaneously cutting costs, including reviewing whether to exit certain markets and assessing how to "optimize core products, platforms and powertrains."
Flashback: Foxconn in 2022 acquired a former General Motors plant in Ohio then operated by Lordstown Motors with plans to jointly manufacture EVs.
- But Lordstown soon collapsed and sued Foxconn over their would-be partnership.
- Foxconn is still hoping to use the Ohio plant as a springboard into American EV production, but the ramp-up is expected to take years, an executive said last year.
What we're watching: Foxconn may already have a coal on the fire. Liu on Wednesday said the company would announce a new Japanese customer for its EV contract manufacturing business in Q1, the Japan Times reported.
