Nissan's Troubled Factory Could Soon Produce Unfamiliar EVs | Carscoops

      Allowing Foxconn to utilize one of Nissan's plants might be a more sensible option than fully closing it down.

      Currently, Nissan's Oppama facility is functioning at only 40 percent of its full capacity. The factory needs to reach an 80 percent utilization level to break even, which is significantly higher than its existing production rates. Foxconn may potentially manufacture its own electric vehicles (EVs) at this location, including several new models in its lineup.

      Following the collapse of earlier merger discussions between Nissan and Honda, Foxconn, the Taiwanese electronics firm most recognized for assembling iPhones, has emerged as a new potential partner for Nissan in EV manufacturing. Reports indicate that Nissan might permit Foxconn to operate its Oppama plant in Yokosuka, Japan, for EV production.

      Foxconn has been expressing its ambitions in the automotive sector for several years, showcasing a variety of electric vehicle models, such as the Model C, Model B, Model E, Model T, and Model V, demonstrating its aim to establish a presence in the competitive EV market.

      Currently, Nissan’s Oppama facility, which has been operational since 1961 and employs about 3,900 individuals, has the potential to produce 240,000 units. However, its production rate has dramatically decreased, reaching only 40 percent last year, which is concerning given that its break-even capacity is 80 percent.

      This lack of utilization has brought up worries regarding the plant's future sustainability. Nissan has already announced plans to close seven global factories but has not disclosed the complete list. If the Oppama plant were to be closed, the financial implications would be significant.

      In addition to the layoffs of thousands of workers, Nissan would also need to replace the test track located at the facility, and numerous local suppliers with established relationships with the automaker would face challenges.

      Although the specifics of the potential partnership are still vague, Nikkei Asia has reported that the two companies might consider a joint venture, aiming for long-term collaboration on future EV developments.

      In light of this report, Nissan emphasized that “the article is not based on any official announcement from Nissan.” The company stated that within the context of its Re:Nissan plan, it is “currently reviewing the integration and closure of some of its global production sites. However, this review has not yet been finalized beyond the two sites already disclosed.”

      On another front, Foxconn is advancing its own electric vehicle plans. According to Auto News, the company aims to commence deliveries of the Model C in North America by the end of this year. Following that, a minivan, referred to as the Model D, is expected to launch in 2027, marking Foxconn's expansion into both the consumer and commercial EV markets.