Have you ever come across a company that is more of a BFF to the iPhone than something else? Well, it’s time to meet Foxconn. This Taiwan headquartered electronics firm is the Apple of automotive manufacturing, boasting of contracts with some of the world’s top automotive manufacturers. But recently, they’ve set their sights on a new challenge: buying into Nissan. But not any part of Nissan, which could easily be a minority one that doesn’t determine a big shift in the automaker’s operations. To some this may sound far fetched but it is an interesting direction the automobile companies are taking in their production line.
The ball is now in the court of Renault, Nissan’s largest shareholder. A senior Foxconn executive is said to have flown to France with a view of possibly buying a stake in Nissan, but what is time, they say? Some may ask, is this the turning point for Nissan’s future that has people so uncertain at the moment?
What many do not know is that Foxconn is not a stranger in the car manufacturing industry.” They have had many deals creating iPhones, iPads, and other electronics and have only been gradually establishing a number of automobile manufacturing contracts as well. BMW as well as Faraday Future are other manufacturers they have struck deals with, all of whom are keen on futuristic electric vehicles. Therefore, it would be safe to claim that they know what is going on in the automotive industry.
Well, here you may be wondering where Nissan comes into the picture; below I will explain why. Oh well, you know what? It seems that Nissan is not really in the best position you could say. Right now they are not selling their vehicles so well and have had to sell some at a loss – something that is unpleasant to hear for any producer, let alone the maker of automobiles. For that matter, unnamed executives have been quoted as saying Nissan has perhaps 12 to 14 months to get its act together before it’s out of business again. This way you would comprehend why they are willing to take any and every measure possible to try and save their business.
It may not seem like it, but this is not the first time a dominant automaker is suffering. We have witnessed Toyota, Ford, and GM struggling at one time or another in the recent past, but they were able to reverse their misfortune. But Nissan is in a slightly different position. But they are already, you know, in the Renault-Nissan-Mitsubishi alliance so that means they are already actually interlinked with Renault and Mitsubishi. Thus, if Foxconn ever decides to venture into the automobile industry to invest in Nissan, it will be supporting a business entity that is already intertwined with two other significant businesses in the industry.
This is not the only probable cooperation that may take place in the future for the Nissan company. Only last week, there was news information suggesting that the Nissan company may be in the process of taking over the Honda company under a new umbrella company. This is not the first time we have heard of the likelihood of a partnership between the two automobile giants. They have extended their collaborations this year to partnering on future technologies and even bringing Mitsubishi into the mix. Therefore, the idea of a merge between the two seems to be growing popular.
The actual question, of course, is whether or not this partnership would really be enough to give Nissan the push it needs to turn the corner. Honda and Nissan are both in trouble, but they are not at the same level of trouble yet. Honda’s revenues have actually been comparatively more consistent, and they have a habit of turning out some of the most dependable and, albeit, efficient vehicles any automotive manufacturing company could dream of. Thus, it is a matter of debate whether a merger of the two can really bring about such a change as to help Nissan turn around its fate.
Thus, the outlook for Nissan is definitely up in the air at the moment, but it is interesting to imagine what kind of offers and cooperation might be expected from this state of affairs. The investment interest that Foxconn has shown in Nissan could be the salvation that Nissan needs to change its fortunes for the better or entirely a wrong move like previously connected partnerships. But one thing is certain: the automotive industry is always an interesting one to be in. But with all the advancements being made now, who is eager to wait for what the future has to bring?
