Who Will Partner With Nissan Now?

Nissan appears to be walking away from its merger discussions with Honda and is now looking for a new partner.

A Bloomberg report indicates the company preferably wants to join forces with someone in the U.S. technology sector. In the background Nissan’s board is pushing for a more aggressive restructuring plan—the company has already reduced output capacity by 20% and has cut 9,000 jobs—which it should finalize by February 13.

The proposed deal with Honda disintegrated after Honda floated the idea of acquiring Nissan outright and making it a subsidiary—Nissan’s leadership did not enjoy that proposal one bit and promptly pulled back from discussions.

The level of investment required was also a sticking point, with Honda insisting on restructuring Nissan’s operations as a prerequisite for any deal. However, Nissan’s current cost-cutting strategy does not include plant closures, which may have contributed to Honda’s reluctance to move forward, although Honda was notably interested in the excess capacity Nissan was able to offer.

With the deal all but officially collapsed, Nissan needs to find an alternative path forward as it continues to struggle with an outdated lineup, excessive production capacity, and financial instability.

Foxconn, the Taiwanese electronics giant best known for assembling Apple’s iPhones, previously explored a potential partnership with Nissan but paused discussions when the automaker entered negotiations with Honda. However, Foxconn never fully abandoned its interest, preferring to wait and see whether the Honda deal would move forward. With Nissan now searching for a new partner, there’s a possibility that Foxconn could reenter the conversation.

Renault, which owns 36% of Nissan, indicated it would vigorously defend its position in the Japanese automaker. That could include pushing for the most lucrative deal. For now, Nissan is running out of options and its financial troubles mean it needs a solution sooner rather than later.

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