Nissan Considers Foxconn Partnership to Keep Oppama EV Plant Open

Nissan Motor Co. Ltd. (7201.T) is in advanced discussions with Taiwan’s Hon Hai Precision Industry Co., Ltd., better known as Foxconn (2317.TW), to repurpose one of its domestic production sites for electric vehicle manufacturing, according to two sources familiar with the talks. If finalized, the arrangement could keep Nissan’s Oppama plant in Yokosuka, south of Tokyo, from shutting down as part of the company’s broader cost-cutting efforts.

Reuters previously reported in May that Nissan was weighing whether to close the Oppama plant as part of CEO Ivan Espinosa’s turnaround plan, which includes shutting down seven of the company’s 17 global factories — equivalent to 41% of its total plants — and reducing the workforce by around 15% (Reuters, May 2025). The Oppama site employs approximately 3,900 workers, plus local suppliers, making its potential closure a significant economic blow to the region.

By allowing Foxconn — the world’s largest contract electronics maker — to use the facility for its own EV production, Nissan could mitigate job losses and reduce idle capacity during its ongoing transition to more competitive, sustainable manufacturing.

Talks between Nissan and Foxconn were first reported by the Nikkei on July 7. While Nissan has publicly stated the report did not come from an official company announcement, neither Nissan nor Foxconn has directly denied the possibility. Foxconn, which did not respond to a Reuters request for comment, has steadily expanded its automotive ambitions in recent years, positioning itself as a major contract producer for global EV brands.

Japan’s Kyodo News also reported that Foxconn may consider acquiring a partial stake in the Oppama facility. The move would align with Foxconn’s push to diversify beyond consumer electronics and deepen its footprint in electric vehicle supply chains.

In a related development, Mitsubishi Motors Corp. (7211.T), Nissan’s junior alliance partner, signed a memorandum of understanding in May with a Foxconn subsidiary to source an EV model from the Taiwanese company (Reuters, May 2025).

If the Nissan-Foxconn arrangement goes ahead, it would reflect the deepening ties between traditional automakers and electronics manufacturers as the global auto industry pivots aggressively to EVs. According to the International Energy Agency (IEA), electric vehicles accounted for about 18% of new car sales worldwide in 2024, with forecasts expecting this to exceed 20% by 2025 (IEA, Global EV Outlook 2024).

Nissan, which has faced intensifying competition in the EV market from both Tesla and Chinese players like BYD, has publicly committed to scaling back underperforming assets while increasing its EV lineup. The potential collaboration with Foxconn could help the Japanese automaker balance near-term cost pressures with long-term electrification goals.

Neither company has confirmed when an official decision might be announced.