Nissan shifts focus to product development in search for strategic partnership

TOKYO, JAPAN: Nissan Motor Co. aims to take an active role in the development and launch of new products as it seeks a new business partner, moving away from merely acting as a contract manufacturer, according to a report from Bloomberg.

The recent collapse of a potential collaboration with Honda Motor Co. has led to renewed interest from Hon Hai Precision Industry Co., which had previously shown a desire to acquire Renault SA’s stake in the troubled Japanese automaker. While Nissan remains open to exploring a partnership with Hon Hai, it is believed that establishing a relationship with a major tech company would be more beneficial, as suggested by sources who chose to remain anonymous.

In recent years, tech firms in the United States and China have made significant strides in autonomous driving and advanced driver-assistance technologies, coinciding with the automotive industry’s shift towards electric vehicles equipped with sophisticated software.

A notable example is Chinese smartphone manufacturer Xiaomi Corp., which has successfully entered the electric vehicle market, while Alphabet Inc.’s Waymo robo-taxi initiative is gaining momentum, even as traditional automakers like General Motors Co. retreat from this sector.

Nissan’s challenges are largely attributed to its aging lineup of outdated vehicles. The company’s early advantage in affordable electric vehicles has been overshadowed by Chinese manufacturers such as BYD Co., and it is also lacking the latest hybrid technologies needed to compete effectively in the U.S. market.

Nissan CEO Uchida’s departure looms as company grapples with financial losses

The search for a new partner follows the breakdown of discussions with Honda, coinciding with an upcoming meeting of Nissan’s board scheduled for Tuesday. During this meeting, the board is expected to deliberate on the potential replacement of Chief Executive Officer Makoto Uchida. Plans for Uchida’s replacement began taking shape after another disappointing financial quarter and the unravelling of the Honda deal.

According to a report from Yomiuri, Nissan’s board is considering three foreign candidates for the CEO position: Chief Financial Officer Jeremie Papin, Chief Performance Officer Guillaume Cartier, and Chief Planning Officer Ivan Espinosa.