Nissan Motor is in discussions with Taiwan’s Foxconn to explore the use of its Oppama plant for electric vehicle production, according to two people familiar with the matter. The potential agreement could prevent the closure of the facility, located in the port city of Yokosuka, south of Tokyo.
The talks come as Nissan moves forward with a global restructuring plan aimed at improving the company’s financial performance. The strategy, led by CEO Ivan Espinosa, includes the closure of seven out of 17 manufacturing plants worldwide and a workforce reduction of approximately 15%.
Originally considered for shutdown, the Oppama plant could instead become a production site for Foxconn’s own EV models, mitigating the impact of the restructuring on the facility’s 3,900 employees and its network of suppliers. The use of existing manufacturing infrastructure by Foxconn would mark another step in the Taiwanese firm’s expanding role in the electric mobility sector.
The ongoing discussions were first reported by the Nikkei business daily. In response, Nissan stated the report was not based on information it had released. Foxconn has not commented publicly on the matter.
Foxconn has recently increased its involvement in the automotive industry, having signed a memorandum of understanding in May with Mitsubishi Motors, a junior partner of Nissan, to supply an electric vehicle model. The potential use of Nissan’s Oppama plant would align with Foxconn’s strategy to secure manufacturing bases for its EV ambitions in key markets.
If finalized, the agreement could provide a pathway for Nissan to maintain operations at Oppama while advancing its cost-cutting agenda. It would also represent a growing trend of collaboration between legacy automakers and electronics manufacturers in the evolving global EV landscape.
