Key takeaways
Table of Contents
- Rates imposed by the US and Canada have forced Nissan to stop the production of three car models intended for the Canadian market.
- Nissan is considering a strategic partnership with Foxconn, which could include the production of electric vehicles in Nissans Oppama factory.
- This collaboration could prevent the closure of the Oppama factory and maintain jobs, while Foxconn has access to a fully equipped production center.
The levying of import duties on the export of cars by the US and Canada has led to it Nissan engine The production of three car models for the Canadian market has temporarily stopped. Since May, production has stopped in factories in Tennessee and Mississippi. It is about the Pathfinder and Murano SUVs, and the Frontier Pick-Up Trucks.
This follows on the rates of 25 percent That Trump has set on imported cars, which has taken retaliation measures. Mazda Motor has also adjusted its production strategy. The company suspends the shipping from vehicles to Canada from his factory in Alabama. At the same time, production for the American market is being increased.
Strategic partnership between Nissan and Foxconn
As a result of these challenges, the car manufacturer is considering a strategic partnership with the Taiwanese electronics giant Foxconn. Confidential conversations suggest that Foxconn could use one of the domestic factories of Nissan for the production of electric vehicles. Nissans Oppama factory in Yokosuka van Closing could save this collaboration. Previous reports suggested that Nissan was planning to close the Oppama site as part of a broader restructuring under CEO Ivan Espinosa. The plan provided for the closure of seven of the seventeen global factories and a personnel reduction of approximately 15 percent.
By allowing FoxConn to produce its own EV models in Oppama, Nissan can avoid closing costs. They are estimated at more than 1.2 billion dollars (1 billion euros) in fixed annual costs. The cooperation would at the same time secure jobs and maintain the stability of the local supply chain. For FoxConn, cooperation is a chance to gain access to a fully equipped production center with established test tracks and logistics networks.
The future of Nissans Oppama factory
The Oppama factory has a historical significance for Nissan, because the revolutionary Nissa Leaf was born here. Despite the heritage, the factory has had to deal with uncertainty as part of the restructuring efforts of Nissan. The proposed cooperation with Foxconn offers a life line, so that the Oppama factory can continue to run and contribute to the future of Nissan. (JV)
