Nissan and Foxconn Eye Partnership to Revamp Japan's Oppama Plant
Oppama, Sunday, 6 July 2025.
Nissan seeks collaboration with Foxconn to potentially save its Oppama plant from closure, focusing on electric vehicle production to preserve 3,900 jobs and leverage technological expertise.
Nissan’s Strategic Move in EV Market
Nissan Motor Co. (7201.T) is actively exploring a partnership with Taiwan’s Foxconn (2317.TW) to enhance its electric vehicle (EV) production at the Oppama plant in Japan. This facility has been identified as a vulnerable unit within Nissan’s restructuring strategy due to the shift in global automotive dynamics towards electric mobility. If the collaboration materializes, it holds potential to preserve around 3,900 jobs at the plant, thus strengthening Nissan’s market position amidst rising competition [1][2][3].
Potential Collaborative Benefits
The collaboration aims to leverage Foxconn’s technological expertise in EV manufacturing, positioning Nissan strategically against industry leaders such as BYD and Tesla. Foxconn, while highly experienced in electronics, seeks to expand its reach within the automotive sector, placing emphasis on not just component supply but full vehicle production. This move is aligned with Foxconn’s broader goal to capture 5% of the global EV market by 2025, although their development pace has met delays [3][4].
Economic and Workforce Impact
Nissan’s Oppama plant had been under consideration for consolidation due to cost pressures and global market changes. However, the partnership with Foxconn could offer a lifeline in maintaining operations, while avoiding the socio-economic repercussions of job losses and SME (small and medium enterprise) supplier network disruptions. The proposed deal exemplifies a significant shift in automotive manufacturing methodologies, prioritizing skilled labor and potential EV production cost reductions by up to 20% [5].
Challenges in Implementation
Despite potential advantages, the partnership brings challenges, including intellectual property rights and potential competition from established EV companies. Additionally, geopolitical dynamics, like tariffs on EV components, could influence the collaboration’s success. The strategic alliance underscores the urgency for Japanese automakers, including Nissan, to innovate and compete in the rapidly evolving EV market [5][6].