In the automotive sector, there is talk of a possible new alliance. After saying goodbye to Honda, Foxconn has not ruled out buying Renault's 36% stake in Nissan. However, the company, which is the world's largest producer of electrical and electronic components for OEMs, has made it clear that its main objective remains industrial cooperation with the Japanese carmaker.
The announcement was made by Foxconn president Young Liu during a meeting with journalists at the company's headquarters in New Taipei. It is significant news that comes at a time of crisis for Nissan, which has been shedding jobs and cutting managers' salaries.
An industrial plan is needed
President Liu said he was willing to work with both Nissan and Honda, but more importantly he was determined to have a clear business plan on the table. If there is an operational need," he said, "we would consider it, but our aim is not to buy shares: we want to cooperate.
Despite its caution, Foxconn has not ruled out a direct deal with Renault for the 36% of Nissan that is split between a directly held stake (18.7%) and a portion placed in a French trust. Nissan is capitalised at almost $10 billion, so the value of the French group's stake is around $3.5 billion, and the sale could be useful for investing in new projects.
Between new duties and Chinese competition
The potential collaboration with Japanese carmakers, who are also struggling with growing global competition from China, comes as Foxconn grapples with the tariffs announced by US President Donald Trump and then suspended until March 4.
But Young Liu reassured journalists that Apple's iPhone production takes place in both the US and Mexico, so 'depending on the tariffs' Foxconn will plan for 'different production capacities'.
