Foxconn aims to co-operate with Nissan, not acquire it

The chair of Taiwan’s Foxconn said on Wednesday that the company’s aim was co-operation with Nissan, not acquisition, as the Japanese carmaker's future hangs in the balance after stepping back from merger talks with Honda.

Struggling Nissan is again at a crossroads after sources said last week that negotiations with bigger rival Honda to create the world’s number four carmaker had been complicated by growing differences.

The deal would have been the latest change in a car industry facing a huge threat from China’s BYD and other electric vehicle entrants.

Nissan is open to working with new partners such as Taiwan’s Foxconn, the world’s largest contract electronics maker and Apple’s main iPhone maker, sources said last week.

Speaking to reporters at Foxconn’s corporate headquarters in New Taipei (outside the capital Taipei), chair Young Liu said his company was not looking to acquire Nissan, but it would consider taking a stake if that was needed for co-operation.

“Purchasing its shares is not our aim; our aim is co-operation,” he added, in Foxconn’s first public comments about its talks with Nissan.

Foxconn is also talking about co-operation with France’s Renault given that company’s stake in Nissan, Liu said. Renault owns 36% of Nissan, including 18.7% in a French trust.

Nissan declined to comment on Liu’s remarks. Renault did not immediately respond to a request for comment.

Nissan shares were down about 7%, while Foxconn shares traded about 1% lower. Nissan and Honda are both due to release their quarterly financial results on Thursday.

While Foxconn, the world’s largest contract electronics manufacturer, is best known for its role as an Apple supplier, it also has ambitions in the electric vehicle sector as it seeks to diversify its business.

Liu said Foxconn would not get into being an auto “brand” and would only provide commissioned design and manufacturing services.

Reuters