The Foxtron Foxtrot...

Foxconn unveiled the Model C, B, and V EVs at Tech Day 2022 (photo: Foxconn)

So, a few weeks ago, I--and a few fellow automotive pundits--offered up some thoughts on the then-still-active Honda-Nissan merger on Automotive Dive. The short answer? There were problems to be addressed, considerable product overlap, and few obvious synergies. Reuters also reported that Nissan's unwillingness to shutter factories and relegation to subsidiary status were the final nails in the coffin. Fortunately, it appears the earlier discussions to collaborate on EVs and software have not been scrapped, so Nissan has not been left completely high and dry.

But now there's a new player on the field: Foxconn, best known as the manufacturer of the iconic iPhone. Is this doomed to failure, or is there light at the end of the tunnel for Nissan?

THE BACKSTORY

Foxconn (known as Hon Hai Technology Group in its home country of Taiwan) embarked on the path to become an EV manufacturer (partnering with internet giant Tencent) back in 2015. Initial reports targeted a 5% share of the EV market and $33B in revenue from EVs and components by 2025, eventually building 40% of the world's EVs. They have reportedly invested about $1.3B in auto-related acquisitions since then, according to Mergermarket. Here's a brief timeline of some notable events:

2017

• Announced plans with IDG Capital to raise $1.5B to seed startups in automotive technologies

2020

• MIH (Mobility in Harmony) Open Platform announced as "the Android system" for EVs

2021

• MIH Alliance gathering (with reportedly more than 1,200 partners over five continents, including Microsoft, Bosch, and NVIDIA) held, targeting the production of a city bus in 2022 and a compact SUV in 2023, under the Foxtron brand.

• Foxconn buys GM's Lordstown, Ohio, plant (now owned by EV truck startup Lordstown Motors) and agrees to build both the Lordstown Endurance pickup and upcoming Fisker Pear EV under contract

• Model E (midsize sedan), Model C (compact SUV), and Model T (city bus) unveiled at Hon Hai Tech Day

2022

• Updated Model C (compact SUV), Model B (compact hatchback), and Model V (midsize pickup) unveiled at Hon Hai Tech Day

2023

• Lordstown Motors files for bankruptcy (and sues Foxconn)

• Model N (cargo van) unveiled at Hon Hai Tech Day

• Foxtron Model C launched as Luxgen n7 in Taiwan

2024

• Fisker files for bankruptcy

• Model D (midsize MPV) and Model U (midsize city bus) were unveiled at Hon Hai Tech Day

And Foxconn has several collaborations already in place:

• Stellantis: 50/50 joint venture to design and sell automotive semiconductors

• ZF: 50/50 joint venture to make passenger vehicle chassis

• Blue Solutions: memo of understanding to co-develop solid state batteries

• Pininfarina: designed the Model E and Model B, and co-developed Model D midsize luxury MPV

• Sharp: 34% ownership stake; the two companies unveiled the LDK+ concept minivan earlier this year

COULD THIS WORK?

Well, the good news and bad news is that, so far, Foxconn doesn't appear interested in any sort of merger or acquisition of Nissan--but they would like to cooperate. That's good news because Foxconn brings capital and EV expertise to the table--and the ongoing delays of Nissan's EVs suggests that Foxconn might be able to help Nissan get EVs to market sooner. But that's bad news considering the current state of Nissan's business, which is much more reliant on not-as-profitable-as-they-used-to-be ICE vehicles, where Foxconn may not be able to help much. It should also be noted that Foxconn has been showing concepts for almost four years (resulting in a pretty substantial portfolio of EVs) but has only gotten one vehicle into actual production--and only for Taiwan. It's not entirely clear why Foxconn hasn't been able to find a partner so far.

It seems like Nissan's either going to have to do some serious buckling down or find an actual partner to work with, in a situation that (unlike the Honda deal) could more easily be framed as a win-win for both companies.