Nissan, after the failure of negotiations with Honda, is looking for salvation in partnership with technohigans, including Foxconn

The Japanese automaker Nissan is ready to cooperate with new partners after Honda, in response to a merger proposal, suggested that Nissan become her subsidiary. Nissan is looking for ways to get out of difficult position and adaptation to changes in the automotive industry, such as the transition to electric cars, advanced software and competition from Chinese manufacturers. Taiwanese company Foxconn is seen as one of the potential partners on the path of the crisis.

Image Source: Video Screenshot / Reuters

Neissan and Honda negotiations, which could lead to the creation of the third largest automaker in the world, came to a dead end, writes Reuters. Nissan General Director Makoto Uchida met with the head of Honda Toshihiro Mibe and announced the decision to stop any discussions after Honda suggested making Nissan to its daughter company.

The failure of the negotiations calls into question the ability of Nissan, which is in the process of restructuring, to independently cope with the current crisis and technological challenges associated with the transition to electric cars, program-controlled cars and competition from new Chinese manufacturers.

Recall that in December both companies signed a memorandum of understanding to discuss a possible merger under the control of a holding company. However, negotiations were complicated by disagreements, and finally stopped after a proposal by Honda about the subordinate status for Nissan. The official decision to withdraw from the negotiations will be made at a meeting of the Nissan board of directors, which will be held next week before the announcement of financial results for the third fiscal quarter.

Regarding Foxconn, a contract manufacturer of electronics, it is known that the Taiwanese company previously turned to Nissan with a proposal for cooperation and may again become a potential partner, despite the fact that in December Nissan rejected the proposal of partnership.

The refusal of negotiations with Honda raises questions about the possibility of Nissan to overcome the current crisis without external assistance. Given the fact that the company has already announced plans to reduce 9,000 employees and reduce production capacities by 20 % as part of the restructuring program, analysts agree that a strong partner will be required to correct the situation.

Representatives of Nissan and Honda refused to comment, saying that they plan to determine further steps by mid -February. Foxconn also did not comment on the situation.