Nissan Motor Co. is once again searching for a strategic partner after rejecting Honda’s proposed merger terms. The automaker, grappling with declining profits and workforce reductions, is now reportedly drawing renewed interest from Taiwanese electronics giant Foxconn.
Following reports of Foxconn’s potential involvement, Nissan’s stock surged by as much as 6%, while Honda’s shares rose over 8% after Nissan’s withdrawal from the merger. The failed negotiations could reshape the Japanese automotive industry and significantly impact Nissan’s future in the electric vehicle (EV) sector.
Merger Talks with Honda Break Down
In December, Nissan and Honda had announced plans to merge under a single holding company, a move that would have made them the world’s third-largest automaker alongside Mitsubishi Motors. However, insiders familiar with the discussions revealed that Honda’s revised terms would have placed Nissan in a subsidiary role rather than as an equal partner. This condition was deemed unacceptable by Nissan’s board, leading to the collapse of the negotiations.
