Nissan and Honda Explore Potential Merger as Foxconn Eyes Stake

The automakers are in talks to form the world’s third-largest carmaker, while Foxconn seeks to acquire Renault's shares in Nissan.

Nissan and Honda are discussing a potential merger to strengthen their position in the electric vehicle market and compete with industry leaders like Toyota and Tesla.
Foxconn, the Taiwanese electronics giant, is in negotiations with Renault to purchase its 36% stake in Nissan, seeking to expand its EV manufacturing capabilities.
Nissan has faced financial struggles, including a 93% profit drop in the first half of 2024 and declining sales, leading to job cuts and production reductions.
Honda is seen as a stronger partner in the potential merger, with a market value over four times that of Nissan, and the deal could also involve Mitsubishi Motors, a Nissan affiliate.
The merger could help both automakers pool resources for EV and hybrid development, addressing gaps in their product lines and responding to rising competition from Chinese automakers.