Photo/Illutration The Oppama plant in Kanagawa Prefecture on July 4 (Kenta Nakamura)

Nissan Motor Corp., currently undergoing corporate restructuring, is considering plugging into major Taiwanese contract manufacturer Hon Hai Precision Industry Co.'s offer to produce electric vehicles, sources said on July 6.

The collaboration includes producing Hon Hai’s EVs at Nissan’s Oppama plant in Yokosuka, Kanagawa Prefecture. This plant is believed to have been targeted for closure as part of Nissan’s restructuring efforts.

If an agreement is realized, Nissan could keep the Oppama plant operating and help maintain employment.

Hon Hai is a global leader in contract manufacturing for electronic devices such as Apple’s iPhone and gaming consoles. Recently, the company has actively expanded into the EV business and has announced its entry into the Japanese market.

Unlike traditional automakers, Hon Hai designs and manufactures its standard EV models and supplies them under other company's brands.

For Nissan, producing Hon Hai’s EVs could boost the low utilization rate of the Oppama plant and enable the company to continue operating the facility.

The Oppama plant began operations in 1961. Its annual production capacity is 240,000 units and employs about 3,900 workers as of late October 2024. It was once one of Nissan’s main factories but now only produces the automaker's Note and Note Aura compact vehicles.

In the fiscal year ending March 2025, Nissan announced a net loss of 670.8 billion yen ($4.6 billion), the third worst in company history.

On the same day, Nissan also announced plans to lay off 20,000 employees worldwide and close seven factories.

According to sources, Nissan has been considering closing the Oppama plant in particular, which has low operational rates, as well as its subsidiary Nissan Shatai Co.’s Shonan Plant in Hiratsuka, Kanagawa Prefecture.

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