Nissan’s Struggling Factory May Soon Build EVs You’ve Never Heard Of
Letting Foxconn use one of Nissan’s plants may make far more sense than shutting it down completely
July 8, 2025 at 16:30
- Nissan’s Oppama plant is currently operating at just 40 percent of its total capacity.
- The factory’s break-even point is 80 percent, far above current production levels.
- Foxconn may build its own EVs at the site, including several of its upcoming models.
After earlier merger talks between Nissan and Honda fell through, a new contender stepped into the spotlight. Foxconn, the Taiwanese electronics giant best known for assembling iPhones, is reportedly in discussions to partner with Nissan on EV production. According to a new report, Nissan may allow Foxconn to use its Oppama plant in Yokosuka, Japan, to build EVs.
Read: Foxconn Will Build EVs In The US But You’ll Never See Its Name On Them
Foxconn has been signaling its automotive ambitions for years now. The company has previewed a range of electric models, including the Model C, Model B, Model E, Model T, and Model V, reflecting a clear push to gain a foothold in the competitive EV industry.
Underused Factory, Uncertain Future
As it stands, Nissan’s Oppama site employs roughly 3,900 people and has been in operation since 1961. It has the capacity to build 240,000 units, but its utilization rate has fallen well below that, reportedly topping out at just 40 percent last year. That’s bad news, particularly since it’s said to have a break-even point of 80 percent.
That underutilization has raised concerns about the plant’s long-term viability. Nissan has announced plans to shut down seven global factories but has yet to name all of them. If Oppama ends up on the chopping block, the closure would be costly.
Beyond laying off thousands of employees, Nissan would need to find a replacement for the facility’s on-site test track, and many nearby suppliers with long-standing ties to the automaker would also be affected.
While details of the arrangement are still unclear, Nikkei Asia reports that the two companies could explore a joint venture, with longer-term collaboration on future EV development.
In a statement responding to the report, Nissan asserted “that article is not based on any official announcement from Nissan.” It handed that under the Re:Nissan plan, the company “is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the two sites that have been announced so far.”
In response to the report, Nissan clarified that “the article is not based on any official announcement.” The automaker said that under its Re:Nissan plan, the company “is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the two sites that have been announced so far.”
Model C Coming to North America
Meanwhile, Foxconn is moving forward with its own EV rollout. Auto News reports that the company plans to begin deliveries of the Model C in North America before the end of this year. A minivan, known as the Model D, is expected to follow in 2027, signaling Foxconn’s broader push into both the consumer and commercial EV spaces.
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