Nissan considers Foxconn tie-up to produce EVs in Japan
This was first reported by the Japanese newspaper Nikkei. The potential collaboration comes as Nissan looks to restructure its global manufacturing footprint, with the Oppama site flagged as a candidate for closure.
A Nissan source told Nikkei that the discussions focus on the Oppama facility in Kanagawa prefecture, south of Tokyo, which employed around 3,900 people as of October. Local authorities are concerned about the plant’s future in light of Nissan’s plans to cut its global final assembly factories from 17 to 10. “Collaborating with Foxconn could let Nissan protect the plant and its employees while also reducing costs,” Nikkei reports.
Foxconn, officially Hon Hai Precision Industry, has been expanding into EV manufacturing since 2019, adopting a contract production model. The Taiwanese company also developed its own EV platform and introduced its own car brand, Foxtron. And it is seeking a manufacturing base in Japan to produce its own EVs at Oppama, with Nissan reportedly considering allocating surplus production lines to Foxconn to boost utilisation.
According to the Japanese newspaper, Oppama operated at just 40% capacity last year, far below its 80% break-even point. Despite its annual capacity of 240,000 units, Nissan’s sluggish sales have left the plant underused. However, closing the facility could prove costly due to employee layoffs and the need to relocate critical functions. Nikkei notes that “closing the plant would force Nissan to build new test courses and facilities elsewhere, potentially harming the development of new vehicles necessary to increase sales.”
Foxconn recently signed an MoU to supply passenger EVs to Mitsubishi Motors and is also arranging to supply electric buses to Mitsubishi Fuso Truck and Bus Corporation. Utilising Oppama as a production base could strengthen its relationships with Japanese automakers further.
Foxconn already expressed interest in a partnership with Nissan, specifically in buying the Nissan shares that Renault wants to sell, as reported in February. And it already saw this opportunity last year and approached Nissan – but was rebuffed at the time. There were reports that the move triggered the “frantic but fleeting round of merger negotiations with Honda” in December – which failed in February 2025.
However, the Japanese government remains cautious about Foxconn’s involvement in Nissan’s management. Nikkei writes, “if a collaboration protects jobs, it would become easier to gain the government’s understanding.”
The move comes as Nissan grapples with weak sales and external headwinds such as US President Donald Trump’s auto tariffs, which are expected to cut the company’s operating profit by up to 450 billion yen (about €2.6 billion) this fiscal year.
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