Nissan Eyes EV Production Partnership with Foxconn

Undergoing significant restructuring, **Nissan Motor Corporation** is reportedly in talks with **Hon Hai Precision Industry** (Foxconn) for a potential collaboration. The discussion centers on jointly utilizing **Nissan’s** Oihama plant to manufacture electric vehicles, as the plant faces potential closure.

Oihama Plant in Focus

**Nissan’s** Oihama plant, located in Yokosuka City, Kanagawa Prefecture, has been a topic of discussion due to potential closure amid the automaker’s restructuring efforts. Now, the company is exploring a partnership with Taiwanese manufacturing giant **Foxconn** for electric vehicle production at the facility.

Potential Benefits for Both Companies

A collaboration with **Foxconn** could provide **Nissan** with a viable alternative to closing the Oihama plant altogether. This would safeguard jobs and mitigate disruption to suppliers. For **Foxconn**, leveraging **Nissan’s** established factory would accelerate its expansion into the electric vehicle market. As of 2023, contract manufacturing accounted for 44% of Foxconn’s revenue (Statista).

Plant Details

The Oihama plant has an annual production capacity of 240,000 vehicles. Production of the EV “Leaf” was previously moved to the Tochigi plant. Currently, the Oihama plant produces the small car “Note” and its derivative, the “Note Aura,” but officials say occupancy rates are below 50 percent.

History and Workforce

The Oihama factory, a major manufacturing hub, commenced operations in 1961 and includes a testing center, research institute, and dedicated automobile pier. The facility employed roughly 3,900 individuals as of last October.

Acquisition Rumors

While joint production is under consideration, one source mentioned the possibility of **Foxconn** acquiring part of the Oihama plant. **Kyodo News** reported that **Foxconn** is weighing a plan for partial acquisition. A **Nissan** spokesperson stated, “This is not an announcement from the company,” and added, “We will continue to maintain transparency to our stakeholders (interested parties) and provide information at the appropriate time if any decisions have been made.” **Foxconn** has not yet provided a comment.

Foxconn’s EV Ambitions

**Foxconn** has traditionally focused on manufacturing electronic devices, including smartphones. In recent years, it has diversified its operations and aims to bolster its presence in the EV sector using **Nissan’s** facilities.