When Foxconn, Apple’s main iPhone maker, said it was getting into the electric car business in 2020, its strategic shift made perfect sense. Contract electronics manufacturing is a relentless, low-margin business, and rumours had been swirling that Apple was developing its own electric vehicle. If Foxconn could apply its mass-production expertise to cars, it could future-proof itself against an increasingly commoditised consumer electronics industry.
Today, Foxconn, the world’s largest contract electronics manufacturer, is considering taking this strategy one step further. It has confirmed interest in acquiring a stake in Nissan aimed at co-operation.
Nissan certainly needs the help. Its merger talks with Honda have officially fallen through, leaving the Japanese carmaker with deeper uncertainty about its future. For Foxconn, co-operating with Nissan would be a rare opportunity to gain manufacturing expertise and market access.