Nissan, a cornerstone of Japan’s car industry, is grappling with escalating financial challenges and is now seeking support from Saudi Arabia’s Public Investment Fund (PIF).
Reports indicate that Nissan is in advanced talks with PIF, moving away from previously rumored partners like Honda and Foxconn. Although both companies had discussions with Nissan, no agreements have materialized.
PIF has established a strong presence in the electric vehicle sector, holding a majority interest in Lucid Motors and launching Ceer Motors, a Saudi EV brand, in collaboration with Foxconn. These efforts are part of Saudi Arabia’s broader push to diversify its economy and invest in emerging mobility technologies.
Analysts believe a partnership between PIF and Nissan could complement Foxconn’s manufacturing ambitions, as Foxconn has stated it seeks only a supplier role, not ownership. This collaboration could reshape industry alliances, and if Honda returns to negotiations, a broader coalition might form, depending on Japanese regulatory approval for foreign investment in domestic automakers.
The potential deal comes as the Renault-Nissan-Mitsubishi Alliance loses momentum, with Nissan’s financial position weakening. Meanwhile, Foxconn has expanded its presence in Japan through a new partnership with Mitsubishi Motors and continues to express interest in working with Nissan.
Ceer Motors, a joint venture between PIF and Foxconn, focuses on advanced vehicle technologies, which aligns with Foxconn’s strategic goals. A successful agreement between Nissan and PIF may pave the way for deeper collaboration with Foxconn, especially in electric vehicle development and manufacturing.
These moves occur amid a rapidly changing global auto market, where Chinese EV manufacturers are growing quickly and demand in Western markets is slowing, leading to instability among smaller EV firms. PIF has played a crucial role in supporting Lucid through these challenges and may now offer similar support to Nissan, linking financial backing with a strategic vision for electric mobility.
Nissan’s experience in the EV market, highlighted by the success of the Leaf, makes it a valuable partner. For Saudi Arabia, joining forces with Nissan could accelerate its ambitions to become a significant player in the evolving automotive sector.