Nissan Mulls EV Tie-Up With Foxconn at Domestic Plants; Collaboration Could Raise Operating Rates, Retain Employees

The Yomiuri Shimbun

15:20 JST, July 7, 2025

Nissan Motor Co. is considering the possibility of cooperating with Hon Hai Precision Industry Co. in the production of electric vehicles, it has been learned.

The automaker is undergoing restructuring and is expected to have the major Taiwan electronics manufacturer, also known as Foxconn, produce EVs in Nissan’s domestic factories, which currently have low operating rates due to sluggish sales.

In May, Nissan announced a plan to close seven finished-car plants in Japan and overseas by fiscal 2027. These include Nissan’s Oppama plant in Yokosuka and its subsidiary Nissan Shatai Co.’s Shonan plant in Hiratsuka, both in Kanagawa Prefecture.

The collaboration with Foxconn could raise operating rates at these plants and allow employees to be retained.

However, the Oppama and Shonan plants do not currently mass-produce EVs, and it is unclear how much benefit there would be for the supply chain for parts that has been established around the plants. There is also the risk of competing with Foxconn in the EV market.

Nissan is expected to hold careful discussions, as some within the automaker hold negative opinions regarding the collaboration.

Foxconn has expanded its EV business in recent years, showing interest in establishing production facilities in Japan. Among major Japanese automakers, Mitsubishi Motors Corp. announced in May that it had signed a memorandum of understanding that it would be supplied with an EV model developed by a subsidiary of Foxconn.