AN ICONIC car brand “on the brink of collapsing” could be rescued by a tech firm.
Nissan reportedly could go under within 12 months if it does not receive much-needed support, having planned to cut 9,000 jobs.
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The Japanese car manufacturer makes up a third of a strategic deal with Mitsubishi and Renault which sees the trio share financial backing and expand markets in Europe, Japan and the US.
It is an agreement that stretches back to 1999, but Renault is understood to be looking to reduce its financial stake.
The withdrawal of this key funding could leave Nissan needing support from the Japanese or US government within the next year to stay afloat.
Nissan had been locked in talks with Honda over a potential merger in recent weeks – potentially creating the world’s third-largest manufacturer.
But the talks have broken down over growing differences between the two firms.
The break down left Nissan staring down the barrel at a perilous year again.
But Taiwan-based tech company Foxconn is understood to be interested in working with the car firm.
The firm is one world’s largest contract electronics maker and manufactures Apples iPhones.
Foxconn is said to be seeking to expand its EV manufacturing and has approached Nissan – though a bid was rejected in December.
Foxconn’s EV business is led by former Nissan senior executive, Jun Seki, who was once seen as a contender to become the automaker’s CEO before the job went to its current boss Makoto Uchida.
Nissan and Honda spokespeople have declined to comment on the status of their talks.
But the two companies had earlier signed a memorandum of understanding to discuss an integration under a holding company.
The talks, though, have been complicated by growing differences.
Multiple sources have said talks hit a wall after Honda said it wanted to turn Nissan into a subsidiary.
A consensus was reached on Nissan’s side that the talks could not proceed under that proposal, a source familiar with the matter said.
Nissan is expected to formalise a decision to withdraw from the discussions at a board meeting next week.
Honda’s current stance, meanwhile, is that it would not accept an integration unless Nissan agrees to become a subsidiary
Honda is Japan’s second-largest carmaker behind Toyota , and Nissan is the third-largest.
The end to the discussions casts further fears over the future of Nissan, which is already in the midst of a turnaround plan.
Sources say it is difficult to see how the car giant can ride out the crisis without external help.
The tie-up talks have coincided with the disruption posed by potential tariffs from newly-elected US President Donald Trump.
Nissan has been hit harder than some other carmakers by the shift to EVs having never fully recovered after years of crisis sparked by the arrest and removal of former Chairman Carlos Ghosn in 2018.
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