What’s Nissan Speaking to iPhone Maker Foxconn About? : Automotive Addicts

Automotive

Nissan and Foxconn—two corporations from vastly completely different industries—are as soon as once more speaking, however this time the dialog has taken a brand new and surprising flip. Whereas earlier talks hinted at deep collaboration and even an fairness stake, the newest dialogue between the Japanese automaker and the Taiwanese tech manufacturing big is much extra pragmatic: Foxconn may quickly be constructing its personal electrical automobiles (EVs) at a Nissan manufacturing unit in Japan.

This potential transfer is centered round Nissan’s Oppama plant in Yokosuka, simply south of Tokyo. In-built 1961, the Oppama plant has lengthy been a key a part of Nissan’s home manufacturing community. It options not simply meeting strains, but additionally its personal take a look at observe, R&D middle, and port entry. Nevertheless, it’s now working at simply 40% capability—far under its 240,000-vehicle annual functionality—and that makes it a major candidate for shutdown beneath Nissan’s aggressive cost-cutting and restructuring plan.

Nissan just lately revealed its intent to shrink its international manufacturing unit footprint from 17 to only 10 crops as a part of a technique to shave 500 billion yen (roughly $3.4 billion) off its working prices by fiscal 12 months 2026. Whereas this doesn’t instantly influence U.S. operations, it’s a part of a broader shift towards making Nissan leaner and extra aggressive, particularly within the shortly evolving EV market.

Enter Foxconn, higher recognized for assembling Apple’s iPhones than for making vehicles—but it’s shortly changing into a severe participant within the EV world. Since 2019, Foxconn has been pivoting into the automotive area, not simply as a provider however as a contract producer and even a model creator. It has developed its personal EV platforms, launched the Foxtron EV model (a three way partnership with Yulon Motor), and is now searching for manufacturing area for its rising ambitions.

The revived discussions between Nissan and Foxconn aren’t about joint ventures or possession stakes this time. In response to reviews from Nikkei, the concept now on the desk is extra simple: Foxconn would use Nissan’s underutilized Oppama plant to construct its personal electrical automobiles, probably together with fashions for different purchasers or for Foxtron’s increasing lineup. It’s a transfer that might profit each corporations—Foxconn good points manufacturing capability in a extremely expert and strategic location, whereas Nissan avoids the social and financial fallout of shuttering a serious plant.

This potential association comes simply after Foxconn secured a take care of Mitsubishi—an alliance companion of Nissan—to develop an EV for markets like Australia and New Zealand, set to launch in 2026. Foxconn can also be reportedly negotiating with Mitsubishi Fuso to produce electrical buses for Japan, underlining its rising footprint in business and passenger EVs alike.

Stateside, Foxconn already owns the previous GM-Lordstown facility in Ohio, the place it hoped to construct automobiles for Lordstown Motors and Fisker. Each of these startups ultimately went bankrupt, however Foxconn has stored the plant alive by pivoting to construct electrical tractors for ag-tech startup Monarch. If the Nissan plant deal comes by way of, it might be Foxconn’s most important step but in scaling its automotive aspirations—on the house turf of certainly one of Japan’s automotive icons.

It’s an enchanting twist within the shifting international auto business, the place tech giants and conventional automakers are more and more crossing paths—and typically swapping roles. For Nissan, leveraging Foxconn’s manufacturing starvation is perhaps a sensible method to protect jobs and make use of dormant capability with out compromising its core enterprise. For Foxconn, this might be one other puzzle piece falling into place in its EV enlargement technique.

Nothing is finalized but, however these talks recommend that each corporations are feeling the strain to adapt—and will have extra to achieve by working collectively than going it alone.

Mike Floyd is a finance government by commerce and a automobile fanatic at coronary heart. As a CFO with a eager eye for element and technique, Mike brings his analytical mindset to the automotive world, uncovering contemporary insights and distinctive views that transcend the floor. His ardour for vehicles—particularly his favourite, the Porsche 911, fuels his contributions to Automotive Addicts, the place he blends a love for efficiency and design along with his skilled precision. Whether or not he’s breaking down business traits or spotlighting rising improvements, Mike helps preserve the location each sharp and forward-thinking.