Nissan Motor is in talks with Taiwan’s Foxconn about a possible collaboration on electric vehicles, as reported by Nikkei on July 6, 2025.

This partnership may help prevent the closure of Nissan’s Oppama plant in Japan.

The Oppama facility, which employs about 3,900 workers, has been considered for consolidation as part of Nissan’s restructuring efforts.

The collaboration would involve the production of Foxconn-branded EVs at the plant. This could preserve jobs and sustain supplier networks.

Nissan explained that the report does not stem from any official information it has released. Foxconn has not yet commented on the discussions.

This development comes after a May agreement in which Mitsubishi Motors, a partner of Nissan, signed a memorandum with a Foxconn subsidiary to provide Mitsubishi with an EV model.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Nissan’s pivot from plant closures to tech partnerships shows evolving restructuring strategy

Nissan’s potential collaboration with Foxconn represents a significant departure from its historical restructuring playbook established during Carlos Ghosn’s turnaround era.

When facing financial crisis in 1999, Nissan’s revival strategy involved closing five plants and reducing its workforce by 20,000 employees to address its staggering debt of $22 billion1.

The current approach, seeking partnerships to preserve the Oppama plant rather than simply closing it, demonstrates how automakers are adapting their restructuring strategies in response to the EV transition’s unique challenges.

This potential collaboration comes amid Nissan’s broader restructuring plan to close seven plants globally by fiscal 2027 following a net loss of 670.90 billion yen (US$4.6 billion)2.

The Oppama facility, which employs approximately 3,900 workers and has significant historical importance in Nissan’s manufacturing network, represents more than just production capacity. It is a symbol of the company’s industrial heritage.

2️⃣ Tech manufacturers increasingly becoming automotive industry players

Foxconn’s discussions with Nissan reflect a growing trend of electronics manufacturers leveraging their expertise to enter the automotive sector, particularly as vehicles become more software-defined.