After the merger with Honda (HMC.US) fell through, it is rumored that Foxconn plans to restart negotiations with Nissan (NSANY.US).

After news broke that Foxconn's parent company, Hon Hai Precision, is interested in restarting negotiations with struggling Nissan Motor Co., Ltd (NSANY.US), Nissan's stock price surged. Previously, Nissan's partnership plan with Honda Motor Co., Ltd. Sponsored ADR (HMC.US) had fallen through. It has been reported that Hon Hai Chairman Liu Yangwei has instructed the Chief Strategy Officer of Hon Hai Electric Vehicles, and former Nissan executive Guan Run, to actively reach out to Renault (RNLSY.US), a French car manufacturer that holds approximately 36% of Nissan's shares, to discuss the possibility of releasing shares. It is understood that last year, Hon Hai explored the possibility of investing in or acquiring Nissan, but put the plan on hold in December after Nissan reached a partnership agreement with Honda and planned to bring both brands under the same holding company. The company is now focusing on leveraging its experience in manufacturing electronic products for companies like Sony (SONY.US) and Cisco Systems, Inc. (CSCO.US) to transition into a contract manufacturer for electric vehicles. This week, Honda and Nissan confirmed that they are still discussing various options, including the possibility of terminating the negotiations. Sources have revealed that as Nissan prepares to end talks with Honda, the company is seeking new partners, which may reopen the door for Foxconn to collaborate. Nissan will announce its third quarter financial report next week. Earlier, the company had announced a 94% drop in net profit for the first half of the year and stated that they will need to lay off 9,000 employees and cut one-fifth of its production capacity.