TOKYO – Nissan Motor Co. is reportedly engaged in discussions with Taiwan’s Hon Hai Precision Industry Co. (Foxconn) regarding a potential collaboration for electric vehicle (EV) production, a move that could prevent the closure of Nissan’s Oppama plant in Japan. The Nikkei business daily, citing an unidentified Nissan source, reported on Sunday that the initiative aims to utilize idle assembly lines at the Oppama facility to manufacture Foxconn-branded EVs. This strategic partnership could safeguard approximately 3,900 jobs and preserve vital supplier networks within Nissan’s operational footprint in Japan.

The Oppama plant, a long-standing cornerstone of Nissan's manufacturing capabilities, has been identified as a potential target for consolidation as part of the struggling Japanese automaker’s broader restructuring efforts. However, the prospect of leveraging its existing infrastructure for external EV production offers a compelling alternative to outright closure, aligning with global trends of asset optimization and diversified manufacturing. While Nissan has issued a statement indicating the report was not based on information released by the company, and Foxconn has not yet commented, the discussions underscore a significant shift in automotive industry dynamics.

This potential alliance follows a recent development involving Nissan’s junior partner, Mitsubishi Motors Corp., which in May signed a memorandum of understanding with a Foxconn subsidiary for the supply of an EV model. This prior agreement signals Foxconn’s aggressive expansion into the automotive sector, positioning itself as a key contract manufacturer for electric vehicles, much as it has done for consumer electronics. For Nissan, a collaboration with Foxconn could provide a pathway to enhance plant utilization and mitigate the substantial costs associated with developing and producing new EV platforms independently, particularly as it navigates a challenging market environment marked by intense competition and rapid technological evolution.

The automotive industry is witnessing an increasing number of cross-sector partnerships as traditional automakers seek to accelerate their transition to electric mobility while tech companies like Foxconn aim to capitalize on the burgeoning EV market. Such collaborations allow for shared investment, risk mitigation, and the leveraging of diverse expertise. Should the discussions materialize into a formal agreement, it would not only secure the future of the Oppama plant but also establish a precedent for how established automakers and new entrants can co-exist and collaborate in the rapidly evolving landscape of electric vehicle manufacturing, potentially reshaping global automotive supply chains.