Nissan, iPhone Maker Restart Talks But Not For What You Think

Foxconn is best known as the contract manufacturer that builds iPhones for Apple and was previously linked with Nissan after the automaker’s merger talks with Honda came to an abrupt end earlier this year.

The previous talks between Nissan and Foxconn centered on a wide-ranging partnership covering EVs, software, and joint production. Foxconn even said that acquiring a major stake in Nissan was on the table. However, the latest talks, which the Nikkei reported on a day ago, center on a deal that would see Foxconn using spare capacity at Nissan’s Oppama plant to build its own EVs.

Nissan Wants to Close Seven Plants Worldwide

The Oppama plant, located in the Kanagawa prefecture city of Yokosuka, south of Tokyo, employs close to 4,000 people and includes a test track, R&D facility, and a port, but is potentially at risk of closing as part of Nissan’s ongoing turnaround strategy that calls for cost cuts of 500 billion yen (approximately $3.4 billion) by fiscal year 2026. The automaker in May said it wants to reduce its number of plants worldwide from the current 17 to just 10, and the Oppama plant is thought to be one of them.

The plant opened in 1961 and has an annual capacity of 240,000 vehicles, though according to Nikkei’s sources, the utilization rate last year was just 40%, about half the break-even point. The plant currently builds Nissan’s Note and Aura compact cars for sale in Japan.

While no plant closures are planned in the US, Nissan has scaled back some EV production plans there and has warned that there may be reduced shifts. At the same time, however, the Trump administration’s tariffs may lead Nissan to move some production from overseas to the US. Nissan may now also be in talks again with Honda, this time as a result of the tariffs.

Foxconn: From Contract Manufacturer To Potential EV Giant

Foxconn has been pushing to become a major manufacturer of EVs since 2019, when it first announced it was open to building EVs under contract, both for startups and companies outside the auto industry, as well as for established automakers. It has since developed its own EV platforms and brands, as well as the separate EV company Foxtron, which is a joint venture with Taiwanese automaker Yulon.

Under a deal announced only in May, Foxconn via Foxtron reached an initial agreement with Mitsubishi, an alliance partner with Nissan, to supply an EV to be sold by Mitsubishi under its own brand, initially in Australia and New Zealand starting in 2026. Foxconn is also thought to be close to reaching a similar deal with Mitsubishi Fuso to supply electric buses for sale in Japan.

Foxconn also came close to building EVs for former American EV startups Lordstown Motors and Fisker. In 2021, the company purchased the former General Motors plant in Lordstown, Ohio, from Lordstown Motors after the startup ran into financial difficulties getting its Endurance pickup truck into production. After Lordstown Motors went bankrupt in 2023, Foxconn was still set to use the plant to build a compact EV known as the Pear for Fisker, though Fisker also went bankrupt in 2024. Foxconn is still building some electric tractors for a company called Monarch at the Ohio plant.