Nissan, long a pillar of Japan's automotive industry, is facing deepening financial troubles and is now turning to an unexpected potential lifeline: Saudi Arabia's powerful sovereign wealth fund, the Public Investment Fund (PIF).
According to Automobilwoche, Nissan is in active discussions with PIF, signaling a possible shift away from earlier rumored partners such as Honda and Taiwanese manufacturing giant Foxconn. While both Honda and Foxconn had reportedly explored opportunities with Nissan, neither engagement has produced a concrete outcome.
PIF is no stranger to the electric vehicle (EV) space. It holds a controlling stake—reportedly around 60%—in US-based EV startup Lucid Motors, with total investments reaching US$8 billion. PIF also launched its own Saudi EV brand, Ceer Motors, in partnership with Foxconn, as part of the ambitious plans to diversify its economy and invest heavily in future mobility technologies.
Industry analysts say a deal between PIF and Nissan would not necessarily conflict with Foxconn's interests. Foxconn has publicly stated its intention to participate in Nissan's future only as a Tier 1 supplier—providing contract manufacturing services, rather than taking on any ownership role.
The prospect of PIF investing in Nissan, combined with Foxconn's manufacturing capabilities, could reshape alliances in the global auto industry. If Honda chooses to reenter the picture, some speculate that a broader coalition may emerge—though this would hinge largely on the Japanese government's willingness to allow foreign entities to wield influence over a historically significant domestic automaker.
Complicating matters further is the waning influence of the Renault-Nissan-Mitsubishi (RNM) Alliance. Once hailed as a symbol of international automotive cooperation, the alliance is showing signs of disintegration as Nissan's finances deteriorate. Notably, Foxconn recently confirmed a partnership with Mitsubishi Motors in Japan and expressed hopes to deepen its ties with Nissan as well.
Crucially, Ceer Motors—the Saudi EV brand—is itself a joint venture between PIF and Foxconn, announced at the end of 2022. Ceer aims to lead in smart cockpit technology, intelligent gateways, and advanced driver-assistance systems (ADAS), all of which align closely with Foxconn's strategic vision.
Should Nissan reach a deal with PIF, insiders suggest that the collaboration could open the door to broader cooperation with Foxconn, particularly in EV development and manufacturing.
The backdrop to these developments is a rapidly shifting global auto market. Chinese EV makers have risen at breakneck speed, while demand in North America and Europe has cooled. The resulting squeeze has led to a wave of bankruptcies among smaller EV startups. PIF has repeatedly stepped in to support Lucid during this volatile period, allowing the company to remain afloat.
Now, Saudi Arabia appears poised to extend a similar lifeline to Nissan—not simply as a financial investment, but as part of a shared strategic vision for the future of electric mobility.
Nissan, for its part, brings a proven EV track record to the table. Its all-electric Leaf remains one of the world's best-selling EVs, underscoring its legacy and technical expertise in the sector. For Saudi Arabia, a deal with Nissan could represent not only a bold economic diversification move, but a chance to become a serious player in the next era of global automotive innovation.
Article edited by Jack Wu
