Nissan is reportedly in discussions with Taiwan’s electronics giant Foxconn to manufacture electric vehicles at its underutilized Oppama facility in Japan, amid the company’s sweeping global restructuring efforts, according to Nikkei.
The proposed collaboration could help to preserve local jobs at the plant as Nissan undergoes a global restructuring, with the Oppama plant under consideration for closure. The move would also support Foxconn’s ambitions to expand its presence in the electric vehicle sector.
In May, Nissan declared plans to shut down seven vehicle plants across Japan and overseas by 2027. Among the facilities under review are the Oppama plant in Yokosuka and the Shonan plant operated by its subsidiary Nissan Shatai Corporation in Hiratsuka, both located in Kanagawa Prefecture. The Oppama site, which employed around 3,900 workers as of October, has drawn particular concern from local authorities. With Nissan aiming to reduce its global final assembly footprint from 17 plants to just 10, the future of the Oppama facility remains uncertain.
Foxconn has been actively expanding into the electric vehicle sector since 2019. The company has developed its own EV platform and launched its brand, Foxtron. Now, Foxconn is reportedly seeking a production base in Japan to build its electric vehicles, with Nissan considering the possibility of allocating idle assembly lines at its underutilized Oppama plant to support Foxconn’s manufacturing needs.
The Oppama plant operated at just 40% capacity last year, below the 80% utilization rate typically required for profitability. Although the facility can produce up to 240,000 vehicles annually, weak sales have led to substantial underutilization. Shutting down the plant, however, could be costly, requiring staff layoffs and the relocation of key operations. According to Nikkei, closure would also force Nissan to build new testing grounds and development facilities elsewhere, which could disrupt the launch of future models that are crucial to revitalizing sales.
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