Foxconn Re-Enters Nissan Merger RaceFoxconn Re-Enters Nissan Merger Race

Taiwan’s digital giant, Foxconn, is emerging as a new possible commercial partner for the struggling Nissan brand after its merger talks with Honda faltered.

With the Japanese automaker actively seeking new partners, the manufacturer of the Apple iPhone is also seeking a tie-up with a traditional automaker to realize its ambitions in the automotive world.

Now sources speaking to Reuters news agency say the two are exploring the potential of a commercial understanding to the advantage of both companies.

The deal with Honda collapsed after Nissan CEO Makoto Uchida met with Honda counterpart Toshihiro Mibe to end merger discussions. Honda had suggested the smaller manufacturer would only be its subsidiary when Nissan was seeking an equal commercial arrangement.

Nissan wants a new partner to help it navigate the multiple headwinds of transitioning to battery-electric vehicles, software-defined vehicles and fierce competition from state-supported Chinese automakers, two industry sources tell the news agency.

Foxconn could make an attractive partner for Nissan because it has been seeking to expand its nascent BEV contract manufacturing business. However, it had been rebuffed last year by Nissan, which may be reappraising the approach now that the deal with Honda is off the table.

Foxconn's BEV business is also led by a former Nissan senior executive, Jun Seki, who was once seen as a contender to become the automaker's CEO.

So far, none of the companies involved in potential merger talks has commented to Reuters.