Foxconn is allegedly exploring a significant investment in Nissan Motor, aiming to take control of the company, which could accelerate the ongoing merger talks with Honda Motor.

Foxconn, known for its significant investments in electric vehicle manufacturing plants, is reportedly interested in acquiring the entire Nissan Motor company-rather than just its factories and equipment-according to Bloomberg sources.

It remains unclear whether Nissan has had significant talks with Foxconn or if the Taiwanese company's offer has already been rejected. Nissan's spokesperson declined to comment, and Foxconn's representative was not immediately available for a response.

The news of Foxconn's interest surfaced as Honda Motor and Nissan revealed they are in discussions about a potential merger, aimed at strengthening the combined company's position to tackle global competitive pressures, particularly in China, where both automakers are facing difficulties. According to the Nikkei, Foxconn's move has pushed the two Japanese companies to accelerate their efforts, driven by concerns that Nissan could be vulnerable to a takeover by the Taiwanese firm.

Honda is exploring multiple options, which could include a capital partnership or the creation of a holding company, as stated by executive vice president Shinji Aoyama on December 18.

Reports of the potential deals come at the end of a turbulent month for Nissan, which has experienced a sharp decline in profitability, a drop in its stock price, a leadership shake-up, and the introduction of a new restructuring plan. Following the news of the potential Honda merger, Nissan's stock surged by as much as 24 percent, marking its largest increase on record.

Nissan's Recent Struggles

Nissan has been grappling with several issues recently, including a sharp decline in profitability and a falling share price. These struggles are due to rising production costs, supply chain disruptions, and increased competition in global markets. A leadership overhaul and a new restructuring plan, focusing on cost-cutting and streamlining operations, have been introduced to address these challenges. Additionally, Nissan faces difficulties in its shift toward electric vehicles, lagging behind competitors like Tesla. The company has also been impacted by global semiconductor shortages, which have further delayed production and deliveries, intensifying its financial woes.

 Foxconn's Role in Auto Industry

Foxconn has rapidly emerged as a key player in the global automotive industry, particularly through its investments in electric vehicle (EV) manufacturing. Traditionally known for assembling electronics, Foxconn has expanded its reach into automotive production, leveraging its expertise in high-tech manufacturing and supply chain management. The company has invested in EV technology and production facilities, positioning itself as a potential partner or supplier for major automakers.