Foxconn is back in talks with Nissan, according to a report by Reuters, this time to acquire part of Nissan’s Oppama plant in Yokohama. After their previous proposal was shot down due to Nissan being in merger talks with Honda, the Taiwanese electronics manufacturer has now reportedly returned with a new plan to build its own electric vehicles (EVs) at the plant, in a bid to help keep the facility from shutting down.
This move is in response to recently appointed Nissan Chief Executive Officer (CEO) Ivan Espinosa’s plans to close the Oppama plant in the port city of Yokosuka, located south of Tokyo. The closure was part of a wider restructuring plan aimed at lowering costs by closing seven of Nissan’s 17 plants and reducing its workforce by 15%. The Oppama plant employed 3,900 people and can produce up to 240,000 vehicles a year.
According to Nikkei Asia, the Oppama plant only operated at 40% capacity and failed to reach its break-even point of 80% last year. However, Autoblog mentioned that closing down the facility may actually hurt Nissan more, as it features many of the company’s R&D facilities, forcing Nissan to develop new facilities elsewhere.
The proposal could benefit Foxconn, as the company is looking to grow its presence in the EV segment. Foxconn already has an EV subsidiary called Foxtron, and the Oppama plant’s large array of R&D facilities could benefit its vehicle development. For Nissan, this will also allow them to maintain most of their facilities and employees while reducing costs.
In May, Foxconn signed a memorandum of understanding (MoU) with Nissan’s junior partner, Mitsubishi Motors, to jointly develop a new EV model. Along with this, they have also revealed that they will be announcing their second Japanese partner soon.
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