- Nissan is in talks with Foxconn to allow EV production at its Oppama plant, possibly avoiding factory closure.
- The move is part of Nissan’s global restructuring, which includes closing 7 factories and cutting 15% of jobs.
- A deal with Foxconn could mark a major cross-industry EV partnership, boosting innovation and cost savings.
Nissan Motor Co. is said to be in talks with Taiwanese technology leader Foxconn to permit electric vehicle (EV) manufacturing at its Oppama plant in Yokosuka, Japan, a step that may prevent the closure of the facility, sources familiar with the situation revealed.
The Oppama facility, which has approximately 3,900 employees, faced potential shutdown due to a significant global restructuring plan revealed earlier this year by Nissan's CEO Ivan Espinosa, reports News.Az, referencing Reuters.
The vehicle manufacturer intends to close 7 out of its 17 factories globally and cut its workforce by 15%.
Permitting Foxconn to produce its own electric vehicles at Oppama would aid Nissan in lowering expenses while lessening the social and economic effects of factory shutdowns. If completed, the agreement would signify an important partnership between a conventional automaker and one of the globe's biggest electronics companies.
Although Nissan did not verify the specifics of the alleged discussions, it mentioned that the information released by the Nikkei business daily was not derived from formal company announcements. Foxconn has not made any public comments regarding the report.
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Foxconn, officially known as Hon Hai Precision, has been swiftly entering the EV market and has recently established a memorandum of understanding with Mitsubishi Motors, which is Nissan’s junior alliance partner, to provide a new electric vehicle model.
If accomplished, this partnership could signal a significant change in Japan's EV manufacturing sector, enabling more flexible production techniques and setting the stage for analogous cross-industry collaborations.
The possible agreement arises amidst increasing worldwide rivalry in the EV industry, especially from China, and indicates Nissan's aim to stay competitive by utilizing outside innovation and manufacturing resources.