Foxconn Aims for Cooperation, Not Acquisition, with Nissan
Taoyuan, Taiwan - Young Liu, Chairman of Taiwanese electronics giant Foxconn, clarified the company's intentions regarding a potential partnership with Nissan.
Following Nissan's withdrawal from merger negotiations with Honda, Liu emphasized that Foxconn's primary objective is collaboration, not acquisition. "Purchasing its shares is not our aim; our aim is cooperation," he stated.
Foxconn's willingness to consider a stake in Nissan stems from its belief in the complementarity of both companies' expertise. Foxconn holds a dominant position in contract electronics manufacturing, with Apple as its largest client. Nissan, on the other hand, faces challenges in the competitive automotive industry and has expressed interest in exploring new partnerships.
"Foxconn is open to working with new partners like Foxconn, the world's largest contract electronics maker," said sources close to Nissan last week.
Liu also acknowledged discussions with Renault, a major stakeholder in Nissan, to explore potential areas of cooperation. Renault holds a 36% stake in Nissan, including 18.7% in a French trust.
As Nissan and Honda prepare to release their quarterly financial results, Foxconn's involvement in the automotive sector underscores its ambition to diversify its business beyond its core role as an Apple supplier. However, Liu clarified that Foxconn has no aspirations to become an automotive brand and will focus solely on providing commissioned design and manufacturing services.
Representatives from Nissan and Renault have not yet responded to requests for comment. Nissan shares experienced a decline of over 8%, while Foxconn shares remained relatively stable, with a drop of about 1%.