The rumored collapse of merger talks between Honda and Nissan amidst the EV industry's transformation has thrust Foxconn into the spotlight as it continues to explore partnerships with Nissan and Renault. This strategic move, influenced by market shifts and US policies, could reshape global automotive dynamics, highlighting Foxconn's cautious yet proactive approach to leveraging its industry knowledge.
The growing EV market is pushing traditional automakers to adjust, leading Honda and Nissan to consider merging by late 2024 for survival. Recent reports, however, state that these talks have collapsed, drawing attention again to Foxconn, which had shown interest in partnering with Nissan.
Although the currently shifting market environment, along with the ongoing calculations between Honda and Nissan, and the stance of Japan's Ministry of Economy, Trade, and Industry (METI) will be factors that influence the final outcome, it is understood that Foxconn continues to communicate with stakeholders, including France's Renault, without abandoning any potential opportunities.
Foxconn's strategic shift may influence Honda-Nissan talks amid evolving US environmental policies
Since the announcement of the merger discussions, Foxconn's strategic shift demonstrates its commitment to this project and reflects a change in overall attitude. As previously revealed by Foxconn chairman Young Liu, all eyes are on the developments ahead.
The key to cooperation between Honda and Nissan reportedly lies in Honda's desire to make Nissan a subsidiary, which has sparked resistance from Nissan. Additionally, market observers note that recent shifts in US policies—particularly regarding environmental protection, green energy, and fossil fuels—may provide the previously struggling Nissan with new opportunities, thus bolstering its confidence in negotiations with Honda.
Regardless of the underlying realities, Foxconn maintains communication with Nissan and hopes that changes in its overall strategy will help relevant entities such as the Ministry of Economy, Nissan, Renault, and investors gain a deeper understanding of Foxconn's investment philosophy and garner support.
The most evident aspect of Foxconn's deliberate low profile is that had it not been for last-minute leaks, the public would still be unaware of Foxconn's significant progress and willingness to invest in Nissan.
It is reported that as early as the second half of 2024, Foxconn's internal team, including chairman Young Liu and Chief Strategy Officer Jun Seki, began taking action, with the latter responsible for communications with external parties like Nissan, Renault, and Japanese government agencies.
Foxconn leverages Jun Seki's expertise to discreetly advance collaboration with Nissan
Foxconn's investments in Japanese companies are not unprecedented. However, following its previous investment in Sharp Corporation, the situation took a downturn due to a critical decision made later in the process, nearly resulting in total losses for the investment. The experience led to a more cautious attitude among Japanese stakeholders towards Foxconn's investments. Furthermore, the Japanese government played a crucial role in earlier dealings with the Toshiba Group.
Thus, for this investment in Nissan, Foxconn has maintained an extremely low profile while leveraging Jun Seki's extensive knowledge of the Japanese automotive industry, related entities, and even Renault. Importantly, Jun Seki possesses rich industry experience and is a professional manager of Japanese nationality.
Honda and Nissan were never ideal business partners due to their similar products and markets. Their attempted collaboration raises questions about external influences. If these forces hadn't intervened, the scenario might be entirely different now. The intervention, pushing two incompatible firms together, could relate to past experiences like Sharp's.
Foxconn, aware of concerns, is discreetly executing its strategies to build trust using Jun Seki's Japanese cultural and business expertise. Despite the challenges caused by premature exposure, Foxconn continues its outreach efforts. After the group's year-end conference and sports event, Jun Seki returned to Japan for further discussions with Nissan.
Foxconn has been discreet about its plans, but it's shown significant commitment to its strategy, likely gaining support for a possible collaboration with Nissan. Foxconn's overture to Nissan and Japan's industrial sector could significantly shape the future of the global automotive industry.