'Foxconn risk' sped up Honda-Nissan merger talks, sources say

Japanese carmakers reacted to Taiwan company's move to acquire shares from Renault

Honda, which formed a strategic partnership with Nissan in August, was worried by Foxconn's recent moves to acquire shares in Nissan. (Nikkei Montage/Source photos by Sae Kamae and Hideaki Ryugen)

Nikkei staff writers

December 18, 2024 14:51 JST

TOKYO -- Honda Motor and Nissan Motor will enter into merger talks in order to preempt a possible bid for the latter from Taiwan's Hon Hai Precision Industry, also known as Foxconn, according to people familiar with the negotiations.

Foxconn, whose main business is contract manufacturing -- known for assembling Apple's iPhone -- but announced in 2019 that it would enter the electric vehicle business, was working behind the scenes to acquire a stake in Nissan. These moves had been noticed for a few months, sources said.