Nissan is currently in advanced discussions with Foxconn to utilize its Oppama plant in Japan for the production of electric vehicles, in a move that could potentially rescue the facility from closure. The Oppama plant, located in Yokosuka and employing nearly 4,000 workers, has been under threat as part of Nissan's ongoing restructuring strategy to optimize operations amid rising EV competition and declining demand in certain markets. Partnering with Foxconn, a global manufacturing giant known for its role in producing electronics and automobiles, could offer a practical solution to maintain operations while expanding EV production capacity.
The potential agreement would see Foxconn lease space or enter a joint venture to manufacture electric vehicles under its own brand, possibly using the MIH EV platform that Foxconn has been promoting globally. While no official confirmation has been made by either party, insiders suggest that the negotiations are progressing positively and could be finalized later this year. The collaboration would mark a significant turning point in Japan's automotive landscape, where traditional manufacturers are increasingly opening their facilities to third-party producers amid shifting market conditions.
This possible partnership builds on a broader trend of automakers reassessing capital-intensive production models. With increasing emphasis on flexibility and cost-sharing, Nissan’s willingness to allow Foxconn into one of its core plants may indicate a strategic pivot towards more agile, hybrid manufacturing arrangements. If successful, it could preserve thousands of jobs, maintain supplier networks, and uphold regional economic stability in Yokosuka, a city with deep ties to the automotive sector.
For Foxconn, the deal would represent a major foothold in Japan's EV industry and offer proximity to advanced engineering expertise. Having already formed similar ventures with other automakers in Southeast Asia and North America, Foxconn continues to diversify its operations beyond electronics into the high-growth EV sector. The move aligns with its stated goal of becoming a major player in global vehicle manufacturing by offering modular platforms and production as a service.
The Japanese government is reportedly supportive of such collaborations, seeing them as a way to preserve domestic manufacturing capacity while transitioning towards next-generation mobility solutions. Local leaders and labor unions are cautiously optimistic, although they seek assurances that any change in management or operations will not lead to job losses or reductions in wages and benefits. Environmental regulators are also reviewing how the potential changes in production lines might align with Japan’s decarbonization targets.
The ongoing talks between Nissan and Foxconn underscore the evolving nature of the automotive industry, where legacy manufacturers and new entrants are finding common ground in a rapidly changing environment. The potential deal reflects a pragmatic approach to asset utilization and economic preservation. As both companies aim to scale EV production, collaborative strategies such as this could serve as a blueprint for sustainable industry transformation. The outcome will likely influence how other global manufacturers adapt to the dual pressures of innovation and economic efficiency in the age of electrification.