Nissan is facing significant challenges once again, as reports emerged last week indicating that negotiations with its larger competitor Honda to form the world's fourth-largest automaker have been hindered by increasing disagreements.
This potential merger would have represented another shift in an automotive industry grappling with intense competition from China's BYD and other electric vehicle newcomers.
Sources indicated last week that Nissan is open to partnerships with new entities, including Foxconn, the largest contract electronics manufacturer globally and the primary producer of Apple's iPhone.
During a press conference at Foxconn's headquarters in New Taipei, Chairman Young Liu emphasized that the company is not seeking to acquire Nissan but would consider acquiring a stake if necessary for collaboration.
"Purchasing its shares is not our aim; our aim is cooperation," he remarked, marking Foxconn's first public comments regarding its discussions with Nissan.
Liu also mentioned that Foxconn is exploring collaborative opportunities with France's Renault, given its stake in Nissan, which includes a 36% ownership, with 18.7% held in a French trust.
Both Nissan and Renault declined to comment on Liu's statements.
Following the news, Nissan's shares fell by approximately 6%, while Foxconn's shares decreased by 1.1%. Both Nissan and Honda are scheduled to announce their quarterly financial results on Thursday.
Although Foxconn is primarily recognized for its role as a supplier to Apple, it is also aiming to expand into the electric vehicle market as part of its business diversification strategy.
Liu clarified that Foxconn does not intend to establish itself as an automotive "brand" but will focus on providing design and manufacturing services on a contract basis.