Nissan in talks with Foxconn to produce EVs at Japan plant

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KATHMANDU: Nissan Motor is in talks with Taiwan’s Foxconn to produce electric vehicles (EVs) at its Oppama plant in Japan, as part of its global restructuring plan, according to a report by Nikkei.

The Oppama plant is located in Yokosuka city of Kanagawa Prefecture, south of Tokyo. It has been in operation since 1961 and currently employs around 3,900 people. The plant has the capacity to produce 240,000 units annually, but its current production rate is only 40 %.

Nissan plans to reduce its final assembly plants worldwide from 17 to 10. Among its five plants in Japan, the Oppama site is being considered for closure. However, shutting it down could lead to high costs and job losses.

To avoid this, Nissan is exploring a partnership with Foxconn. The deal could allow Foxconn to produce its own EVs at the plant, while Nissan can reduce costs and keep the factory running.

Foxconn, also known as Hon Hai Precision Industry, is a major assembler of Apple’s iPhones. The company entered the EV business in 2019 and has been expanding its presence in the sector.

In May, it signed deals to supply electric vehicles to Mitsubishi Motors and electric buses to Mitsubishi Fuso. Foxconn is currently looking for a manufacturing base in Japan.

The Oppama plant has important test facilities, a research center and its own port for vehicle transport. If the plant shuts down, Nissan may need to rebuild these facilities elsewhere, which would be costly and time-consuming.

A partnership with Foxconn could help maintain local jobs, support nearby suppliers, and keep the supply chain stable. It could also help Foxconn strengthen its ties with Japanese automakers.

While the Japanese government is cautious about Foxconn’s deeper involvement in Nissan, job protection may help the plan gain approval.

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