Japanese automaker Nissan, which has been struggling with management difficulties, is reportedly considering producing electric vehicles (EVs) for Taiwan's Foxconn (Hon Hai Precision Industry) at its main factory, which has been operating in the Tokyo metropolitan area for over 60 years.
The Nihon Keizai Shimbun (Nikkei) reported on July 6 that Nissan has begun negotiations with Foxconn for cooperation in the EV sector, with discussions centered on the utilization of Nissan's Oppama plant in Yokosuka, Kanagawa Prefecture, near Tokyo.
The Oppama plant, which began operations in 1961, is known as a key facility that contributed to Nissan's establishment of its production technology. It started producing the electric vehicle "Leaf" in 2010, and manufactured five different models until 2019.
However, as the equipment has become outdated, the plant's operating rate has dropped significantly. While the plant once produced 240,000 units annually, last year's production was only about 100,000 units, with the operating rate falling to around 40%.
Nikkei reported that Foxconn is considering producing its own EVs at the Oppama plant, and that Nissan also sees the advantage of increasing the plant's operating rate by allocating surplus production lines to Foxconn. The report added that if the collaboration is realized, Nissan could also curb large costs such as severance pay resulting from plant closure.
Foxconn has reportedly been seeking a manufacturing base in Japan to expand its EV business.
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