Foxconn Rules Out Acquisition of Struggling Nissan

Foxconn denies interest in a merger or acquisition of struggling automaker Nissan, saying it seeks only to cooperate in battery-electric-vehicle production.

The Taiwanese smartphone giant and manufacturer of Apple iPhones had been seen as offering a lifeline to Nissan after the failure of merger talks with Honda against the backdrop of declining sales of its cars in its two largest markets, China and the U.S.

Now Foxconn Chairman Young Liu tells journalists at its corporate headquarters in New Taipei that his company was not looking to acquire Nissan but it would consider taking a stake if that was needed in any cooperation deal.

Reuters reports that Foxconn is also talking about cooperation with French automaker Renault in being a major stakeholder in Nissan since the companies’ Alliance era under disgraced CEO Carlos Ghosn. Currently Renault owns 36% of Nissan, including 18.7% in a French trust.

Liu adds that Foxconn would not be seeking to join an automotive brand and would only provide commissioned design and manufacturing services. He says: “Purchasing its shares is not our aim; our aim is cooperation.”

Neither Nissan nor Renault have commented on the issue.

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