by Foxconn May Use Nissan Plant for Electric Vehicle Production
After unsuccessful merger talks between Nissan and Honda, a new potential partner has emerged. Foxconn, the Taiwanese electronics manufacturer known for assembling iPhones, is discussing cooperation with Nissan in the field of electric vehicle production. Specifically, it concerns the use of the Nissan plant in Yokosuka (Japan), which is currently operating at only 40% capacity.
The Oppama plant, which has been operating since 1961, has an annual capacity of 240 thousand cars, but its utilization is significantly below the 80% level required for break-even. This raises concerns about the future of the enterprise, especially against the backdrop of Nissan’s plans to close some of its production sites.
Foxconn’s Plans in the World of Electric Vehicles
Foxconn is actively developing its own line of electric vehicles, including models C, B, E, T, and V. The company plans to start deliveries of the Model C in North America this year, and launch the Model D minivan on the market in 2027. Cooperation with Nissan could be an important step for Foxconn in expanding its production capabilities.
In response to media publications, Nissan representatives stated: “This article is not based on any official statements from the company. As part of the Re:Nissan plan, we are indeed reviewing the issues of integration and closure of some production sites, but final decisions regarding most of them have not yet been made.”
The closure of the Oppama plant, if it happens, will have serious consequences not only for the 3.9 thousand employees but also for local suppliers who have collaborated with Nissan for decades. An additional problem will be the need to find a replacement for the test track located on the plant’s territory.
Foxconn is demonstrating increasing interest in the automotive industry, and a potential deal with Nissan could provide the company with access to high-tech production and the experience of the Japanese automaker. At the same time, for Nissan, this could be a chance to increase the efficiency of using its production capacity during the transition to electric vehicles. The final details of the potential deal remain unknown, but the market is closely watching the development of events.
