Nissan climbs on reports of Foxconn’s renewed interest in tie-up

YOKOHAMA, KANAGAWA: Nissan Motor Co.’s shares climbed after a report said Hon Hai Precision Industry Co. was making another pass at the flailing carmaker as its tie-up with Honda Motor Co. falls apart.

Nissan rose as much as 6 percent after CNA reported that Hon Hai Chairman Young Liu instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock.

According to Bloomberg, Hon Hai, the Taiwanese iPhone-maker better known as Foxconn, was exploring an investment or buyout of Nissan last year but backed off in December after the Japanese carmaker penned a deal with Honda to bring both brands under a single holding company. The Taiwanese company is seeking to become a contract manufacturer for electric vehicles by leveraging its experience making electronics for Sony Group Corp., Cisco System Inc. and other companies.

Also read: Nissan looking for a new partner as Honda deal set to collapse: Bloomberg

Honda and Nissan confirmed this week that they’re still discussing various options, including the possibility of ending deal talks. Nissan is now seeking a new partner as it prepares to end negotiations with Honda, according to people familiar with the matter, which could reopen the door for Foxconn.

Nissan which will report third-quarter earnings next week, announced a 94 percent drop in net income for the first half has said it will need to dismiss 9,000 workers and cut a fifth of its manufacturing capacity.