Foxconn - one of the handful of companies which produces the Apple iPhone - is reportedly in talks with Nissan to use one of the carmaker’s Japanese factories to build its own EVs, according to insider sources who spoke to Nikkei.
The potential deal is off the back of major cuts throughout the embattled Nissan brand, which earlier this year announced it would close seven factories and make 20,000 of its 133,000 employees redundant in a bid to stay alive.
Nikkei reports one of the plants likely to be closed is the Oppama factory, which currently produces the Japan-only Nissan Note and Aura, however it previously served as one of the production facilities for the Juke, Leaf and Cube.
Given it only produces Japanese market models and is reportedly operating at less than half of its capacity, the Oppama plant is one on the shortlist for closure, which could put approximately 3900 jobs at risk.
However, the facility’s excess capacity could be used by Foxconn’s EV subsidiary Foxtron to keep it afloat, as a part of a wider deal between Nissan and the Taiwanese firm. This would also help to protect some of Nissan’s critical Japanese supply chain.
The two brands have been linked for some time now, with Foxtron’s chief executive being a former Nissan employee, Jun Skei, while the Taiwanese company declared its interest to partner with Nissan following the latter’s breakdown in merger talks with Honda.
Following that announcement, Nissan has made multiple, dire announcements about its future, such as a net loss of ¥670.9 billion (A$7.1 billion) throughout the 2024 Japanese financial year (April 2024 to March 2025), a staggering loss of ¥1.097 trillion (A$11.5 billion) compared to the financial year prior.
In announcing the Re:Nissan recovery plan, Espinosa detailed a product roadmap until March 2027, however the carmaker is pulling resources from working on later projects to focus on its immediate future.
On top of earlier reports suggesting the Oppama factory would be closed, Nikkei has also previously claimed Nissan could sell its headquarters in Yokohama, said to be worth approximately ¥100 billion ($1.08 billion).
It’s not like Nissan and Foxtron are total strangers either, as one of the Japanese brand’s closest allies is already working with the Taiwanese firm.
In May, Mitsubishi - a partner of Nissan through the Renault-Nissan-Mitsubishi Alliance - announced it would source an EV from Foxtron to be sold in Australia and other markets, however this model will be built in Taiwan by Nissan-affiliated firm Yulon Motor.
Nissan could sell its house to stay alive - report
