Automotive
Nissan and Foxconn—two corporations from vastly different industries—are once more talking, but this time the conversation has taken a brand new and unexpected turn. While previous talks hinted at deep collaboration and even an equity stake, the newest dialogue between the Japanese automaker and the Taiwanese tech manufacturing giant is much more pragmatic: Foxconn might soon be constructing its own electric vehicles (EVs) at a Nissan factory in Japan.
This potential move is centered around Nissan’s Oppama plant in Yokosuka, just south of Tokyo. In-built 1961, the Oppama plant has long been a key a part of Nissan’s domestic production network. It features not only assembly lines, but additionally its own test track, R&D center, and port access. Nonetheless, it’s now operating at just 40% capability—far below its 240,000-vehicle annual capability—and that makes it a major candidate for shutdown under Nissan’s aggressive cost-cutting and restructuring plan.
Nissan recently revealed its intent to shrink its global factory footprint from 17 to only 10 plants as a part of a method to shave 500 billion yen (roughly $3.4 billion) off its operating costs by fiscal 12 months 2026. While this doesn’t immediately impact U.S. operations, it’s a part of a broader shift toward making Nissan leaner and more competitive, especially within the quickly evolving EV market.
Enter Foxconn, higher known for assembling Apple’s iPhones than for making cars—yet it’s quickly becoming a serious player within the EV world. Since 2019, Foxconn has been pivoting into the automotive space, not only as a supplier but as a contract manufacturer and even a brand creator. It has developed its own EV platforms, launched the Foxtron EV brand (a three way partnership with Yulon Motor), and is now looking for production space for its growing ambitions.
The revived discussions between Nissan and Foxconn aren’t about joint ventures or ownership stakes this time. In response to reports from Nikkei, the thought now on the table is more straightforward: Foxconn would use Nissan’s underutilized Oppama plant to construct its own electric vehicles, possibly including models for other clients or for Foxtron’s expanding lineup. It’s a move that may gain advantage each corporations—Foxconn gains production capability in a highly expert and strategic location, while Nissan avoids the social and economic fallout of shuttering a significant plant.
This potential arrangement comes just after Foxconn secured a take care of Mitsubishi—an alliance partner of Nissan—to develop an EV for markets like Australia and Recent Zealand, set to launch in 2026. Foxconn can also be reportedly negotiating with Mitsubishi Fuso to produce electric buses for Japan, underlining its growing footprint in industrial and passenger EVs alike.
Stateside, Foxconn already owns the previous GM-Lordstown facility in Ohio, where it hoped to construct vehicles for Lordstown Motors and Fisker. Each of those startups eventually went bankrupt, but Foxconn has kept the plant alive by pivoting to construct electric tractors for ag-tech startup Monarch. If the Nissan plant deal comes through, it could possibly be Foxconn’s most vital step yet in scaling its automotive aspirations—on the house turf of one in every of Japan’s automotive icons.
It’s a captivating twist within the shifting global auto industry, where tech giants and traditional automakers are increasingly crossing paths—and sometimes swapping roles. For Nissan, leveraging Foxconn’s manufacturing hunger could be a sensible technique to preserve jobs and make use of dormant capability without compromising its core business. For Foxconn, this could possibly be one other puzzle piece falling into place in its EV expansion strategy.
Nothing is finalized yet, but these talks suggest that each corporations are feeling the pressure to adapt—and could have more to realize by working together than going it alone.
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Mike Floyd is a finance executive by trade and a automobile enthusiast at heart. As a CFO with a keen eye for detail and strategy, Mike brings his analytical mindset to the automotive world, uncovering fresh insights and unique perspectives that transcend the surface. His passion for cars—especially his favorite, the Porsche 911, fuels his contributions to Automotive Addicts, where he blends a love for performance and design together with his skilled precision. Whether he’s breaking down industry trends or spotlighting emerging innovations, Mike helps keep the positioning each sharp and forward-thinking.
This Article First Appeared At www.automotiveaddicts.com
