Nissan, a cornerstone of Japan’s car industry, is grappling with mounting financial difficulties and is now in talks with Saudi Arabia’s Public Investment Fund (PIF) for support, according to Automobilwoche.
The discussions with PIF mark a shift from earlier speculation about possible partnerships with Honda and Foxconn. While Honda and Foxconn explored collaborations, no firm agreements were reached. PIF, which holds about 60% of US-based Lucid Motors and has invested US$8 billion according to Automobilwoche, is already active in the electric vehicle (EV) sector. The fund also teamed up with Foxconn to launch Ceer Motors, Saudi Arabia’s own EV brand, as part of the kingdom’s broader push to diversify its economy and invest in future mobility.
Industry observers note that a PIF-Nissan deal would not necessarily clash with Foxconn’s interests. Foxconn has publicly stated its role would be limited to supplying manufacturing services, not taking ownership in Nissan. If Honda reconsiders joining, a larger alliance could form, but this would depend on the Japanese government’s stance regarding foreign influence in a key domestic automaker.
Meanwhile, the Renault-Nissan-Mitsubishi Alliance is losing cohesion as Nissan’s financial woes deepen. Foxconn, which recently partnered with Mitsubishi Motors, has also expressed interest in working more closely with Nissan.
Ceer Motors, the Saudi EV venture, is a joint effort between PIF and Foxconn, focusing on smart technologies and advanced driver-assistance systems—areas that align with Foxconn’s ambitions. Insiders suggest that a deal between Nissan and PIF could facilitate broader cooperation with Foxconn, especially in EV manufacturing.
These developments come amid rapid changes in the global auto market. Chinese EV manufacturers have surged ahead, while demand in North America and Europe has softened, leading to failures among smaller EV startups. PIF has repeatedly supported Lucid Motors during this turbulent period, according to Automobilwoche.
For Nissan, a partnership with PIF could offer a crucial boost. The company’s electric Leaf remains a top-selling model, highlighting its expertise in the field. For Saudi Arabia, investing in Nissan represents both a strategic economic move and a step toward establishing itself as a leader in the next phase of automotive innovation.
