Japan’s Nissan Motor is in private discussions with Taiwan’s Foxconn about letting the electronics giant use one of Nissan’s domestic factories to build electric vehicles.

Two people familiar with the talks say the move could rescue the Oppama plant from being shut down. Back in May, it was reported that Nissan was weighing the closure of its Oppama factory in Yokosuka, south of Tokyo, as part of sweeping cost‑cutting measures under CEO Ivan Espinosa.

The proposed deal avoids Nissan’s plant closure

Facing tough market conditions, Espinosa plans to shutter seven of the company’s 17 global factories and trim the workforce by around 15%. Cancelling operations at Oppama would affect roughly 3,900 employees and dozens of local suppliers.

According to the insiders, by inviting Foxconn to produce its own branded EVs on‑site, Nissan could keep the Oppama doors open. The Oppama plant is the cornerstone of Nissan’s manufacturing history and was the origins of its landmark Leaf EV, although the plant has been facing uncertainties amid the firm’s restructuring exercise.

This arrangement would not only help Nissan avoid the substantial costs of mothballing the plant, estimated at over $1.2 billion in fixed expenses annually, but also preserve jobs and sustain the broader supply chain.

Foxconn, in turn, would gain a ready‑made manufacturing hub with built‑in test tracks and logistics networks.

The Japanese business daily Nikkei first broke news of these discussions late Sunday, though Nissan officially denied that its information formed the basis of the report.

A spokesperson for Foxconn did not respond to requests for comment, leaving details of the potential agreement under wraps. However, a Kyodo News article on Monday indicated that Foxconn was considering a plan to acquire a portion of the Oppama plant.

Foxconn deal falls under restructuring at Nissan

In a separate development, Nissan confirmed that it intends to buy out stakes held by major investors Castlelake and Lind Invest, though it did not link this move directly to the Foxconn talks.

Nissan insists these plans reflect its broader strategy to consolidate ownership and shore up finances amid restructuring.

Earlier this year, Nissan’s junior alliance partner, Mitsubishi Motors, inked a memorandum of understanding with a Foxconn subsidiary. Under that deal, Foxconn will supply Mitsubishi with a new electric‑vehicle model.

This prior collaboration hints at the Taiwanese firm’s growing footprint in automotive manufacturing, extending from supplying components to potentially running full‑scale assembly operations.

Should Nissan and Foxconn reach an agreement, it could set an industry precedent. As legacy automakers grapple with shrinking EV margins, partnerships with vertically integrated manufacturers like Foxconn might deliver the cost efficiencies and production flexibility needed to stay competitive.

For Foxconn, this could further consolidate its position as the world’s largest contract electronics manufacturer, currently the biggest assembler for Apple’s iPhones. The company recently surpassed analysts’ forecasts after recording second quarter revenue of T$1.797 trillion or about $55.2 billion, representing a 15.2% year-on-year increase.

For the city of Yokosuka, it would mean safeguarding an iconic plant and the livelihoods tied to it, an outcome with significant regional economic implications.

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