A few days before Christmas in 2024, Honda (HMC) and Nissan (NSANY) held a press conference to announce that they had signed a memorandum of understanding that laid out the plans for a possible merger. Under the proposed deal, the two Japanese automakers would link up under a common parent company by August 2026, similar to how the 14 brands under Stellantis formed.
Like Stellantis (STLA) , the marriage of Honda and Nissan was framed as a way for the two distinct automakers to share technology and software resources as competition from Chinese marques and from trailblazers like Tesla (TSLA) have begun to chip away at its dominance.
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But like some soon-to-wed couples discussing the terms of a prenup, things turned south when talk about money and business came into the picture. One term that Honda had for Nissan was to demonstrate that it could be financially sound on its own. Additionally, reports emerged that Honda had a problem with Nissan carrying baggage belonging to Renault.
However, the engagement finally unraveled when Honda’s proposed to buy a huge chunk of Nissan to make it a Honda subsidiary, an idea that Nissan execs did not like.
As the dust settles on Honda and Nissan's failed link-up, a new, but familiar player has entered the arena to offer a deal with the troubled automaker.
The iPhone maker makes a grand return to Nissan
With Honda out of the picture, Taiwanese electronics giant Foxconn (FXCOF) has reportedly resumed its hunt for a partnership with Nissan. According to reports from the Taiwan Central News Agency, Foxconn, known best as the contract manufacturer of Apple's (AAPL) iPhones, has dispatched one of its top executives, Jun Seki, over to Japan to talk to Nissan executives.
Sources close to Nissan told Automotive News that several Nissan board members are open to partnering with Foxconn. Some Nissan directors expressed that the automaker can further benefit from a partnership with a firm outside the auto industry. A company like Foxconn could bring financial help and technological know-how to a deal.
Previously, Foxconn came into the picture with Nissan in early December 2024 when reports emerged that Foxconn's Seki had landed in France to discuss the potential purchase of a stake in Nissan. At the time, reports and rumors about the potential Nissan-Honda merger were still yet to be confirmed; the press conference announcing the merger [that never was] occurred on Dec. 23.
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Report: Honda and Nissan ended the merger talks on good terms
Despite the frustration and the failure to reach a deal, several reports note that the Nissan-Honda's merger talks came to an amicable end.
Nikkei reported that Nissan CEO Makoto Uchida personally told Honda CEO Toshihiro Mibe of Nissan's decision to close merger talks during a meeting in Tokyo on Feb. 6. Additionally, Kyodo News reported that Nissan’s board had decided to terminate the talks during a meeting the day before.
Though the two manufacturers couldn't agree to a full merger, Honda expressed that it still wants to collaborate on future projects with Nissan. Prior to its merger talks, Nissan, Mitsubishi and Honda formed an alliance to jointly work on electric vehicles and software.
Foxconn's Nissan game isn't its first auto partnership
Hired in 2023, Foxconn's Jun Seki is the Chief Strategy Officer for Foxconn's EV business called Foxtron. Before that, he was a Nissan executive who worked with the automaker on multiple continents. He was also a member of the original management team under CEO Makoto Uchida. However, Seki left the job shortly after being named CEO of Nidec Corp., a Japanese electric motor manufacturer.
Currently, Foxconn is "technically" in the EV business. It owns 51% of the Foxtron brand of EVs with Taiwanese auto manufacturer Yulon. The company has previewed several EV concepts but has not yet begun to produce one.
Related: iPhone maker Foxconn is serious about stake in struggling car company
Despite this, the iPhone manufacturer is knee-deep in the auto industry through key partnerships.
It has partnered with German auto parts supplier ZF on axles and chassis modules.
Additionally, it formed a 50-50 joint venture with Stellantis — the parent company of Dodge, Jeep, Chrysler, Ram and Maserati — to develop and make automotive semiconductors that will be released in 2026.
Foxconn also has a deal with the German electronics company Infineon Technologies (IFNNF) to co-develop advanced semiconductors for EVs. Foxconn is also committed to investing $250 million toward an industrial park in Vietnam focused on making EV components.
However, in the United States, the iPhone manufacturer's best-known automotive venture was with the ill-fated Lordstown Motors. Prior to Lordstown's filing for bankruptcy in 2023, Foxconn had invested hundreds of millions of dollars in the ill-fated EV company. The developers of the Endurance pickup filed for bankruptcy after failing to resolve a dispute with Foxconn over a $170 million investment it promised.
The Nissan Motor Company trades on OTC markets in the United States as NSANY and on the Tokyo Stock Exchange under the ticker number 7201.
The Honda Motor Company is listed on the New York Stock Exchange under the ticker HMC.
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