Nissan is scrambling to find new EV partners as panic sets in

After ending its planned EV merger with Honda, Nissan is now on the hunt for a new partner to help it recover. To survive the industry’s shift to electric, software-defined vehicles, Nissan could turn to Apple supplier Foxconn.

Nissan looks past Honda for new EV partners

At a board meeting on Wednesday, Nissan decided to move on from the EV merger with Honda. The sudden change comes after Honda reportedly wanted more control over the partnership.

According to sources close to the matter, Nissan is now searching for new partners. Nissan CEO Makoto Uchida met with Honda’s head honcho on Thursday morning (via Financial Times), confirming plans to end merger talks.

With a combined market cap of around $58 billion, the alliance would have created the world’s fourth-largest auto group.

The merger with Honda fell apart after the company told Nissan that the new offer, which would make them a subsidiary, was “take it or leave it.” Honda is reportedly worried about Nissan’s turnaround plans and accused them of moving too slowly on their restructuring plans.

Nissan announced plans to reduce its workforce by about 9,000 and 20% of global production as part of its turnaround strategy.

Last year, Nissan’s global production fell 9%, with every region except Mexico seeing significantly less output. China led the way, with production slipping 14.7%, followed by the US (-13.3%), the UK (-12.6%), and Japan (-8.6%).

Two sources said Nissan’s new partners could include tech leaders outside the EV and automotive industry. Several board members also discussed a partnership with Apple supplier Foxconn.

Foxconn already met with Renault, which owns 36% of Nissan, about buying a part of its stake in the Japanese automaker. The interest sparked the initial talks between the two companies. Jun Seki, chief strategy officer at Foxconn’s EV business, worked at Nissan for 33 years, rising up the ranks to become the number three senior executive.

Nissan and Honda declined to comment, saying they expect a final decision by mid-February. Foxconn also had no comment on a potential partnership. Both companies are set to report earnings next week, so we will likely find out more.

Can Foxconn or another tech partner help Nissan turn things around? Drop us a comment below and let us know your thoughts.