Earlier reports indicated that NissanInterested in discussing cooperation with Foxconnafter,NikkeiEarlier reports indicated that the two sides are currently actively discussing plans to jointly promote electric vehicle production at the Oppama plant in Yokosuka City, Kanagawa Prefecture, Japan. It is not ruled out that Foxconn will manufacture its own brand electric vehicles here in the future, thereby opening a new era for electric vehicle production in Japan.
Since its opening in 1961, the Oppama Plant has long served as one of Nissan's main production lines, employing approximately 3900 people and providing stable employment for the local community. However, with the global automotive market shifting toward electric vehicles and Nissan's push to restructure its production capacity, the plant has been repeatedly rumored to be under closure or consolidation review. Nissan announced in May that it would reduce its global vehicle plant count from 5 to 17, with the Oppama Plant and its subsidiary Shonan Plant among those included in the restructuring.
Currently, the Oppama plant mainly produces small cars such as the Note, with an annual production capacity of 24 vehicles. However, according to statistics from market research firm MarkLines, the capacity utilization rate of the Oppama plant in 2024 will be only about 40%, far below the 80% required for the break-even point, becoming a heavy operating burden for Nissan.
To revitalize factory resources, Nissan is exploring the possibility of Foxconn taking over some idle production lines to produce its own brand of electric vehicles. This would improve overall production line utilization and reduce Nissan's operating pressure. For Foxconn, this partnership will expand its presence in the Japanese market and establish electric vehicle manufacturing capabilities in Japan, furthering its "electric vehicle + manufacturing services" strategy.
If this collaboration goes smoothly, it will not only generate new production capacity for the Oppama plant, but also help Nissan avoid the massive workforce adjustments and asset losses that would result from a plant closure. More importantly, the Oppama plant is surrounded by a large number of Nissan-affiliated component suppliers. Preserving this supply chain will help maintain the competitiveness of Japan's automotive industry and stabilize the local economy and employment structure.
As global automakers accelerate their transition to electric vehicles and adjust their production capacity, Japan's domestic automotive manufacturing base is bound to face more challenges in the future. Whether this negotiation between Nissan and Foxconn can become a model for cross-industry cooperation is not only crucial for corporate reconstruction but also a touchstone for Japan's manufacturing industry's transition to a new stage.
However, Nissan and Foxconn are still in the detailed negotiation stage. If the cooperation can be successfully finalized, it is expected that the Oppama plant will usher in the production of new electric vehicles within the next few years.
