Hon Hai Precision Industry Co (鴻海精密) is reportedly making another pass at Nissan Motor Co, as the Japanese automaker's tie-up with Honda Motor Co falls apart.
Nissan shares rose as much as 6 percent after Taiwan’s Central News Agency reported that Hon Hai chairman Young Liu (劉揚偉) instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock.
Hon Hai, the Taiwanese iPhone-maker also known as Foxconn Technology Group (富士康科技集團), was exploring an investment or buyout of Nissan last year, but backed off in December after the Japanese carmaker penned a deal with Honda to bring both brands under a single holding company.
Photo: Ann Wang, Reuters
The Taiwanese company is seeking to become a contract manufacturer for electric vehicles by leveraging its experience making electronics for Sony Group Corp, Cisco Systems Inc and other companies.
Honda and Nissan confirmed this week that they are still discussing various options, including the possibility of ending deal talks.
Nissan is now seeking a new partner as it prepares to end negotiations with Honda, according to people familiar with the matter, which could reopen the door for Foxconn.
Nissan, which is to report third-quarter earnings next week, announced a 94 percent drop in net income for the first half and has said it would need to dismiss 9,000 workers and cut one-fifth of its manufacturing capacity.
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