Hon Hai Eyes Nissan Stake Acquisition Amid EV Expansion
Introduction:
Hon Hai Precision Industry Co., a major Apple Inc. manufacturing partner, has expressed interest in acquiring Renault SA's stake in Nissan Motor Co. This move could provide a lifeline for Nissan, which has faced challenges in recent years.
Hon Hai's Strategic Shift:
Hon Hai, also known as Foxconn, has expanded its focus into new industries, including electric vehicles (EVs), to offset slowing smartphone sales. The company has been observing the potential tie-up between Honda Motor Co. and Nissan, which may now be ending.
Nissan Share Reaction:
Nissan's shares briefly recovered following Liu's comments but later resumed their decline. Liu stated that Hon Hai would consider buying Renault's stake if there was an operational need, but their primary focus was on cooperation.
Hon Hai's EV Ambitions:
Over the past year, Hon Hai has benefited from increased demand for Nvidia Corp. servers used in AI development. However, the company has yet to establish a strong foothold in the EV market.
Partnership Approach:
Liu emphasized that Hon Hai's interest in Nissan was not a merger, but rather a partnership. He noted that the company had met with several automakers, including Nissan and Honda, to explore collaboration opportunities.