Could consumer electronics giant Foxconn have prompted merger talks between Japanese carmakers Honda Motor Co. and Nissan Motor Co.?
Bloomberg reports that the companies' discussions "appear to have accelerated after Hon Hai Precision Industry Co. … known as Foxconn, approached Nissan about acquiring a stake in the company, a person familiar with the matter said."
Foxconn — most known for molding and assembling iPhones and other electronic technology — has been investing in electric vehicle manufacturing capacity. In Taiwan in 2022, it showed two possible vehicles it says would be made in Asia and the U.S.
It's continued to investigate its potential in the auto industry since then.
"We see boundless opportunities and endless possibilities for the integration [with] the traditional automotive industry," Wen Kuo, vice president of Foxconn's FIH subsidiary, said in September. "In the future, we look forward to having more in-depth cooperation with global partners to jointly promote the intelligent and electric transformation of the automotive industry."
Foxconn is a top global manufacturer, but its big ideas haven't always come to fruition. In 2018, it made headlines when it announced plans for a $10 billion plant near Kenosha, Wis., that would employ 13,000 people and make big-screen LCD TVs.
The plant that opened in 2020 represents a $910 million investment by Foxconn and employs 1,000 people making data servers.
It's not clear if Honda and Nissan will come to a deal. Bloomberg says it's unclear if Nissan officials are continuing to talk with Foxconn or if it has already rejected its proposal.