Taiwan's Foxconn is pausing its interest in Nissan Motor as the Japanese automaker explores a potential merger with Honda Motor , Bloomberg News reported on Friday, citing people familiar with the matter.
Nissan Motor (NSANY) shares surged 30% Wednesday following a Nikkei newspaper report that the struggling Japanese automaker is in talks with Honda Motor (HMC) over a possible merger in a move that could upend the electric vehicles (EV) market. Meanwhile, Honda shares were down about 2.5% in afternoon trading.
The Japan-based automaker's Americas unit will stop funding Pride events and cancel its hiring and promotion quotas for diverse applicants, according to Starbuck.
A senior executive of Taiwan-based contract manufacturer Foxconn is in France to discuss a potential stake purchase in Nissan Motor from the Japanese automaker's biggest shareholder Renault , Central News Agency reported on Thursday.
There were big things happening in Japan on Wednesday as news of a potential merger by Nissan Motor (NSANY 17.73%) and Honda Motor (HMC -3.86%) sent Nissan shares up by 18.5% through 2:25 p.m., but pushed Honda stock down by 3.3%.
Honda and Nissan have acknowledged the possibility of a merger, driving an active trading session in Tokyo for the Japanese auto makers.
Honda and Nissan have acknowledged the possibility of a merger, driving an active trading session in Tokyo for the Japanese auto makers.
Peter Wells, professor of business and sustainability at Cardiff Business School's Centre for Automotive Industry Research, discusses the prospect of a Nissan and Honda merger amid reports that the two Japanese automakers are in talks to operate under a holding company.
A merger between Honda and Nissan would not come with quick gains, as the automakers would first need to align their strategies while overlapping regional markets would limit the sales benefits, S&P analysts said on Wednesday.
Top Japanese carmakers Nissan Motor and Honda Motor are understood to be exploring a blockbuster merger, as the two rival companies seek to stay competitive on the road to full electrification. It is thought the prospective tie-up could create the world's third-largest auto group by vehicle sales, with 8 million sales annually, according to Citi.
Renault is open to Nissan pursuing merger talks with Honda as the French automaker seeks way to insulate itself from the crisis plaguing its long-time alliance partner, according to people familiar with the situation. Renault is eager for the Japanese company to find ways to become stronger given it isn't itself willing to inject cash into Nissan, said the people, who asked not to be identified discussing internal matters.
Honda and Nissan are reportedly in early discussions regarding a potential merger, which could reshape Japan's automotive industry. According to Bloomberg, the proposed union aims to strengthen their competitive position globally, particularly against Toyota, the world's largest carmaker.