Deal could save Oppama factory from shutdown
Nissan Motor is in talks with Taiwan’s Foxconn to allow the electronics giant to use one of its Japanese factories to manufacture electric vehicles, according to two sources familiar with the discussions. The move could prevent the closure of Nissan’s Oppama plant in Yokosuka, south of Tokyo, amid ongoing global restructuring.
Reuters previously reported in May that Nissan was considering shuttering the Oppama facility as part of CEO Ivan Espinosa’s plan to close seven of the company’s 17 global factories and cut its workforce by 15%. The plant currently employs around 3,900 people.
Allowing Foxconn to use the site to build its own EV models could ease the impact of restructuring by keeping the factory operational and preserving jobs and supplier relationships. The discussions were first reported by the Nikkei business daily on Sunday night.
Automaker denies confirming report
In response, Nissan said the Nikkei report was not based on official company information. Foxconn has yet to respond to requests for comment. Meanwhile, Kyodo News reported that Foxconn may be considering a partial acquisition of the plant.
Foxconn’s growing EV ambitions
This development follows an earlier agreement in May between Foxconn and Mitsubishi Motors, a junior partner of Nissan, in which a Foxconn subsidiary would supply an EV model to Mitsubishi. The deal illustrates Foxconn’s increasing interest in the electric vehicle space and its strategy to leverage existing automotive infrastructure in Japan.
If successful, the Nissan-Foxconn collaboration at Oppama could serve as a model for similar partnerships between automakers and tech companies navigating EV transition and overcapacity challenges.
