Nissan Explores Foxconn Partnership to Sustain Oppama Plant Operations, Sources Say

Japanese automaker Nissan Motor Co. is in discussions with Taiwan’s Foxconn to potentially allow the electronics manufacturer to build electric vehicles (EVs) at its Oppama facility in Yokosuka, south of Tokyo, according to two sources familiar with the matter.

The move could help prevent the closure of the plant, which employs roughly 3,900 workers.

The talks come as Nissan implements a global restructuring strategy under CEO Ivan Espinosa, who announced plans earlier this year to shut down seven of the company’s 17 manufacturing plants worldwide and reduce the global workforce by approximately 15%. The potential collaboration with Foxconn could soften the impact of these changes on the domestic workforce and associated suppliers.

Nissan previously considered shuttering the Oppama facility, a longstanding production site near Tokyo. If a deal is finalized, it would allow Foxconn to produce its own EVs there, aligning with both companies’ strategic interests in the growing electric mobility sector.

The discussions were initially reported by Japan’s Nikkei business daily. In response, Nissan stated that the report was not based on information disclosed by the company. Foxconn has not issued a comment.

Additional reporting by Kyodo News suggests that Foxconn may be exploring the possibility of acquiring a portion of the Oppama plant outright. This follows recent developments in which Mitsubishi Motors, a junior partner in Nissan’s alliance, signed a memorandum of understanding with a Foxconn subsidiary to supply an electric vehicle model.

If successful, the collaboration could support Nissan’s broader turnaround plan and help repurpose existing manufacturing assets for next-generation vehicle production. It also represents a notable step for Foxconn, best known for assembling consumer electronics like the iPhone, in further expanding its automotive ambitions.

While the proposed arrangement has not been confirmed by either party, it reflects shifting dynamics within the global auto industry, where traditional carmakers and tech-focused firms are increasingly exploring partnerships to share costs and speed up the transition to electric mobility.

As restructuring efforts continue, Nissan is also reportedly engaging with suppliers to explore more flexible payment terms, aiming to preserve cash flow during the implementation of its “Re:Nissan” recovery strategy.

With input from Reuters and the Sun.