Fear of Foxconn reportedly driving possible Nissan, Honda and Mitsubishi merger
- Reference: 1734578947
- News link: https://www.theregister.co.uk/2024/12/19/foxconn_nissan_honda_merger_acquisition/
- Source link:
A merger is not a far-fetched outcome. In March this year the three Japanese firms announced an intention to collaborate, and in August signed a memorandum of understanding they [1]described as covering "environmental technologies, electrification technologies, and software development" and involving "a broad scope" of discussions.
That alliance was widely interpreted as the three automotive titans realizing that, if working alone, they would struggle to build electric vehicles (EVs) capable of competing strongly with rivals – despite Nissan pioneering EVs with its Leaf models. EV-only manufacturers have a head start with their software development capabilities, battery supply chains, and overall know-how. EV buyers, meanwhile, expect their purchases to have plenty of tech inside to power automation, safety, and entertainment systems that are generally more sophisticated than those offered by traditional automakers.
[2]
Since the August signing of the memorandum of understanding, little about the trio's collaboration has been heard. But plenty has been heard from Nissan, which has made thousands of layoffs and last week announced new leadership as part of a turnaround plan.
[3]
[4]
According to Japanese outlet [5]Nikkei , Taiwanese contract manufacturer Foxconn saw Nissan's troubles and pondered acquiring a big chunk of shares in the automaker. Foxconn fancies that buy because it's already [6]entered the EV market and aspires to become a bigger player.
Nikkei has since [7]reported that Honda is so unhappy about Foxconn's ambitions that it decided to push for a merger.
[8]
Foxconn has already [9]created EV reference designs it hopes automakers will adopt. To date it's had limited success with that endeavor.
[10]Apple supplier Foxconn and Nvidia team up to deploy Taiwan's fastest AI supercomputer
[11]Indian govt probes claims Foxconn won't hire married women
[12]Microsoft builds $3.3B cloud campus on Foxconn's failed Wisconsin LCD plant plot
[13]Foxconn’s latest Indian foray is a chip packaging JV with HCL Group
Modern cars are sometimes blithely described as "computers on wheels," which belittles the knowledge needed to make robust and reliable vehicles. But the phrase also reflects the reality that consumers want cars that, like almost every product these days, deliver an excellent digital experience. The likes of Honda and Nissan have not grown up delivering digital experiences. Foxconn knows how to help realize those experiences – building a few billion iPhones will teach a company what consumers want – but is yet to learn how to build cars at scale.
An established automaker like Nissan, which has some EV smarts, might help Foxconn to create a business with clear ties to its core tech manufacturing practice.
Nissan and Honda, meanwhile, have responded to speculation of their merger with statements that both proclaim reports of a combo "are not based on an announcement from the Company."
That's a long way short of a denial that merger talks have taken place. The whole saga is a clear sign that the tech industry is shaking up the car caper. ®
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[1] https://australia.nissannews.com/en-AU/releases/nissan-honda-and-mitsubishi-motors-sign-mou-on-strategic-partnership
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z2Ooeop0bT2mC0zlRIdzEQAAAEQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z2Ooeop0bT2mC0zlRIdzEQAAAEQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z2Ooeop0bT2mC0zlRIdzEQAAAEQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://asia.nikkei.com/Business/Automobiles/Honda-and-Nissan-to-begin-merger-talks-amid-EV-competition
[6] https://www.theregister.com/2022/10/18/foxconn_ev_expansion/
[7] https://asia.nikkei.com/Business/Automobiles/Foxconn-risk-sped-up-Honda-Nissan-merger-talks-sources-say
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z2Ooeop0bT2mC0zlRIdzEQAAAEQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2022/10/18/foxconn_ev_expansion/
[10] https://www.theregister.com/2024/10/08/foxconn_nvidia_ai_supercomputer/
[11] https://www.theregister.com/2024/06/27/foxconn_hiring_married_women/
[12] https://www.theregister.com/2024/05/08/microsoft_datacenter_wisconsin/
[13] https://www.theregister.com/2024/01/19/foxconn_hcl_india_osat/
[14] https://whitepapers.theregister.com/
LOL, no. Look at the unholy Stellantis union.
It's mainly an entire bag of idiots. They will each want to do it their way and "not invented here" will sink the entire venture, and when they do decide on something, it'll be the lowest common denominator that satisfies nobody.
I won't shed a tear over Nissan and Mitsubishi, but I do remember the days gone by when Honda could engineer its way out of a paper bag.
Not just Foxconn
There’s also the fact that the long term Nissan and Renault partnership has failed to deliver benefits to Nissan, leaving them high and dry. Meanwhile the emergence and strong growth of Chinese EV manufacturers like BYD and Li Auto have taken significant market share and none of these three Japanese brands have kept up. Nissan failed to follow up on Leaf and they all missed the demand for hybrid vehicles. Nissan owns 24% of Mitsubishi (largest shareholder) which would be why they too are in the mix for a three way merger with Honda.
computers on wheels
Modern cars are sometimes blithely described as "computers on wheels," which belittles the knowledge needed to make robust and reliable vehicles. But the phrase also reflects the reality that consumers want cars that, like almost every product these days, deliver an excellent digital experience.
Is the desire for digital experience a reality though? Have consumers been given a real BEV alternatives to a computer on wheels yet?
Mabey in the small car class the Leaf and Volt, but you could see the manufactures where just dabbling (or meeting some arbitary governmnet target to obtain subsudies) and where not really not really interested in EV vehicles.
Then Tesla turned up with their computers on wheels in larger sedan and sports car models, seemingly scared the shit out of the other automakers who decided to lift wholesale the Tesla design and felt they absolutley had to do EV's as computers on wheels.
My Ideal EV is not a computer on Wheels, but a car from the 90-00's with an electric drivetrain, the computer power I want onboard is just enough to look after the drivetrain and nothing else.
I have been seriously comtemplating that instead of purchasing a new EV getting an electric converstion to my existring 4x4 done, the costs of doing this appear to be on a par with a new EV anyhow.
This merger will be good.