In the wake of failed merger discussions between Honda, Nissan, and Mitsubishi, a new player has emerged in the automotive sector: Foxconn. The tech company, renowned for manufacturing the iPhone, is reportedly nearing a deal with Mitsubishi to manufacture electric vehicles (EVs) for the brand.
According to Nikkei Asia, discussions between the two companies have spanned over six months. However, it remains uncertain if these plans influenced Mitsubishi’s decision to remain independent of Honda and, to a degree, Nissan, beyond their existing Renault-Nissan-Mitsubishi Alliance.
Adding another layer to the situation, reports suggest that Nissan and Foxconn are also in talks to collaborate on EV manufacturing. Legacy brands like Nissan and Mitsubishi could potentially benefit from outsourcing their EV production to Foxconn. The tech giant has actively sought to diversify its operations, which primarily focus on electronics production.
Foxconn Chairman Young Liu has been pursuing avenues to expand the company’s footprint beyond its core business. Foxconn’s prior attempts to enter the automotive sector have mostly been unfruitful outside of Foxtron, which mainly operates in Taiwan. However, its potential cooperation with Nissan could open doors to new export markets. In contrast, Mitsubishi Motors has been cautiously responding to the reports. Mitsubishi Motors said in a statement: “The information reported is not issued by our company,” it said. “We will continue to explore collaboration opportunities with various partners to achieve sustainable growth.”
Reuters reported that Foxconn and Nissan are in more open discussions, with Foxconn considering an investment in Nissan. Furthermore, the tech company expects to “sign an EV deal with an unspecified Japanese car maker within two months.”
