Foxconn Will Build EVs for Two Japanese Companies Following Failed Nissan-Honda Talks

8 months, 2 weeks ago - 19 March 2025, autoevolution

Foxconn announced an imminent deal with two unnamed Japanese carmakers to build EVs under contract. The news comes after merger talks between Nissan and Honda, which were rumored to also involve Foxconn, collapsed last month.

During the recent earnings call, Hon Hai Precision Industry Co, better known in the Western world as Foxconn, unveiled its plans to start building electric vehicles for two unnamed Japanese carmakers. The news didn't come as a surprise, considering its long-time plans to start EV contract manufacturing.

Foxconn was rumored to take a controlling stake in Nissan when the Japanese carmaker found itself in hot waters at the end of 2024. This put the Japanese government in panic mode and forced Nissan to work out a plan with Honda to save the company. The talks resulted in a memorandum of understanding to form a 50-50 joint venture. Later, Honda backtracked and wanted to incorporate Nissan, causing the merger plans to collapse.

After the talks failed, Foxconn denied it was interested in acquiring a stake in Nissan. It makes sense, especially if Nissan goes bankrupt. By waiting on the side, Foxconn can purchase the company's remains at a much better price. Foxconn still has its eyes on Nissan, or at least the Japanese automotive industry, as the recent announcement revealed.

At the company's earnings announcement, Foxconn Chairman Young Liu said the two Japanese customers would work with Foxconn through contract design and manufacturing services to develop electric vehicles. Liu did not identify the companies, and spokespeople for Nissan and Honda declined to comment on the information.

Foxconn has always dreamed of becoming an EV contract manufacturer, but so far, the odds have not been in its favor. The Taiwanese company, which became famous for manufacturing Apple's iPhones and laptops for various companies, announced its automotive ambitions years ago. However, its partnerships have collapsed, with Lordstown Motors and Fisker being the most prominent examples.

Foxconn is invested in several automotive projects, including taking a 50% share in ZF Group's axle system assembly unit and the German supplier's chassis modules business. It formed a 50-50 joint venture with Stellantis to design and sell automotive semiconductors starting in 2026. Foxconn also has a deal with the German chipmaker Infineon to co-develop advanced silicon carbide semiconductors for EVs.

However, these are relatively small projects compared to the company's huge ambitions. When Nissan-Honda talks failed, Foxconn reportedly proposed a four-way alliance involving Nissan, Honda, and Mitsubishi. However, it's premature to speculate on this partnership.

Foxconn also has its own car projects, including the Model C electric crossover it plans to build in the US in the fourth quarter of 2025. Foxconn intends to expand its manufacturing footprint in the US in the wake of escalating tariffs.