Nissan Considers Foxconn Deal to Sustain Oppama Operations as EV Demand Surges
In a strategic move aimed at preserving its historic Oppama manufacturing plant in Japan, Nissan Motor Co. is reportedly in discussions with Taiwanese electronics giant Foxconn to explore the possibility of assembling electric vehicles (EVs) under the Foxconn brand. According to a recent report by Nikkei Asia, this collaboration could help Nissan avoid shutting down the Oppama facility, which has been a significant part of its manufacturing network for decades.
As global automakers pivot towards electric mobility, traditional production facilities like Oppama face existential threats due to underutilization and shifting production priorities. Nissan’s effort to repurpose the plant through a manufacturing arrangement with Foxconn represents a broader industry trend: legacy auto companies are increasingly turning to contract manufacturing and shared platforms to remain competitive in the evolving landscape of electric mobility.
Background: Nissan’s Restructuring Drive
The consideration to partner with Foxconn comes amid a larger restructuring effort at Nissan. The company had previously announced plans to reduce its global manufacturing footprint by closing 7 of its 17 production plants worldwide and laying off up to 15% of its global workforce. As part of this overhaul, the Oppama plant, located in Yokosuka, Japan, was reportedly being evaluated for potential closure due to its declining production volumes.
Currently employing around 3,900 people, the Oppama facility has historically played a key role in Nissan’s domestic vehicle production. However, as demand shifts from internal combustion engine (ICE) vehicles to electric and hybrid alternatives, the plant’s capacity has been underutilized. This has led Nissan to explore ways to keep the plant operational without significantly adding to its capital expenditure.
Foxconn’s EV Ambitions
For Foxconn, best known as the primary assembler of Apple’s iPhones, this partnership aligns with its ambition to expand aggressively into the electric vehicle market. In recent years, Foxconn has revealed a series of EV concepts and entered into various partnerships globally to establish its presence in the automotive sector.
Foxconn’s EV unit has already signed agreements with manufacturers such as Fisker and Lordstown Motors, and in April 2025, its EV division reiterated its interest in collaborating with Japanese carmakers, including Nissan. By tapping into existing plants like Oppama, Foxconn could accelerate its market entry while avoiding the high costs and delays associated with building new production infrastructure from scratch.
A Win-Win Proposition
The potential collaboration presents clear advantages for both companies. For Nissan, leasing out excess capacity to Foxconn would reduce the financial burden of maintaining an underutilized plant, preserve thousands of jobs, and support its supplier ecosystem. For Foxconn, access to a ready-to-use facility in Japan would enable faster scaling of EV production and strengthen its credibility in the automotive industry.
Moreover, this move would signal a shift in manufacturing philosophy—blurring the lines between traditional automakers and tech manufacturing giants. With EV production requiring fewer moving parts and more electronic integration, tech-focused firms like Foxconn bring valuable capabilities to the table, especially in battery technology, software, and cost-efficient assembly.
No Official Confirmation Yet
Despite the report from Nikkei, Nissan has clarified that no formal decision has been made and that the article was not based on an official announcement. Foxconn, meanwhile, has yet to issue any official statement regarding the development. This leaves room for speculation, although industry analysts believe that such a move would make strategic sense given both companies’ current trajectories.
Impact on Employment and Suppliers
If the deal goes through, it could safeguard employment for the nearly 4,000 workers at Oppama and provide stability to local auto parts suppliers who depend on Nissan’s production volumes. The factory’s closure would have wide-reaching implications, not just for Nissan’s balance sheet but also for the local economy.
Retaining the plant through a contract manufacturing agreement would demonstrate Nissan’s commitment to its domestic workforce while also adapting to global trends. It could also serve as a template for other struggling facilities in Japan and abroad, especially as automakers face pressure to streamline operations and cut emissions.
Future Outlook
This potential partnership also reflects the broader industry trend of collaboration across traditional boundaries. Automakers are increasingly seeking alliances with technology firms to fast-track innovation, reduce costs, and improve production flexibility. As the EV market becomes more competitive, strategic tie-ups like the one being considered by Nissan and Foxconn may become more common.
If formalized, this deal could mark a turning point in Nissan’s manufacturing strategy and further validate Foxconn’s transition from consumer electronics to electric mobility. The move could also inspire similar partnerships across the automotive sector, where the race to electrification is pushing companies to rethink long-standing operational models.
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