Foxconn's Takeover Plans Stir Up the Automotive Industry

The Taiwanese electronics corporation Foxconn, known for producing iPhones and electronic devices, has expressed a controlling interest in Nissan Motor, according to a person familiar with the matter. Foxconn is reportedly interested not only in the production facilities and equipment of the Japanese automaker, but in the entire company, which is known for models like the Pathfinder, Sentra, and the GTR sports car. Although it is still unclear whether Nissan has entered into serious discussions with Foxconn or has already rejected the advances, a Nissan spokesperson declined to comment. Initially, no comment was available from Foxconn either. In parallel with these developments, Nissan and Honda have initiated talks about a possible merger, which could strengthen the competitiveness of the two automakers on a global level, particularly in China. According to Nikkei, this move has been accelerated to prevent a takeover of Nissan by Foxconn. Honda is considering various approaches, including a capital connection or the formation of a holding company. The reports about potential mergers and acquisitions come at a turbulent time for Nissan, characterized by a sharp decline in profits, falling share prices, and a comprehensive restructuring plan. The prospect of a merger with Honda caused Nissan's share price to rise by up to 24%, the largest jump in the company's history. For Foxconn, a majority stake in a Japanese company would not be a novelty. Back in 2016, the corporation took over two-thirds of the electronics manufacturer Sharp, which brought it numerous advantages. However, this stake is being gradually reduced, although Foxconn remains the main shareholder.