NEW YORK, Dec. 18 (Xinhua) — Honda Motor Co. is in talks to come back to assistance from Nissan Motor Co. by doubtlessly forming the world’s third-largest carmaker to be able to higher face up to escalating challenges for the worldwide auto trade, reported The Wall Street Journal (WSJ) on Wednesday.
“The two Japanese manufacturers have engaged in merger discussions that appear to have accelerated after Hon Hai Precision Industry Co., the Taiwan-based producer of iPhones known as Foxconn, approached Nissan about acquiring a stake in the company,” famous the report. Foxconn has been investing closely in factories to construct electrical autos.
Nissan’s years of simmering points boiled over in early November, when the corporate slashed earnings forecasts and mentioned it must cull 9,000 jobs globally. The automaker additionally introduced a 20 p.c reduce to world output as customers flip their backs on its lackluster lineup, leaving its fashions to collect mud at dealerships, in response to the report.
“Various entities have circled Nissan since then, including several activist investors that have built positions in the stock. Honda’s market value is more than four times greater than Nissan’s, despite the former making only marginally more cars. This indicates Honda would have the upper hand in talks about a potential deal that the company describes as a merger,” it added.