Japanese automaker Nissan Motor Co is in talks with Hon Hai Precision Industry Co (鴻海精密) about a potential partnership in the electric vehicle (EV) sector that could allow Hon Hai to produce EVs at a local plant to avoid the risk of closure, a Japanese business newspaper reported on Sunday.
The two companies are considering producing EVs at Nissan’s Oppama plant in Yokosuka, Kanagawa Prefecture, Nikkei Asia reported, citing a Nissan source.
The Oppama plant, which employed about 3,900 people as of the end of October last year, was among the facilities at risk of closure under Nissan’s restructuring plans, the report said.
Photo: Reuters
Nissan in May announced plans to reduce its global production bases from 17 to 10, Nikkei said.
The plant produces 240,000 units per year, with capacity rate running at 40 percent, below the required 80 to break even, while many Nissan-affiliated autoparts suppliers operate near the Oppama plant, it said.
A partnership with Hon Hai, also known as Foxconn Technology Group (富士康科技集團), could enable Nissan to retain the plant, boost its utilization rate, preserve local employment and lower production costs, the report said.
A Hon Hai official yesterday said the company had no comment.
The news of the potential Nissan collaboration came after Hon Hai in May signed a deal to produce EVs in Taiwan for Japan’s Mitsubishi Motors Corp, based on Foxtron Vehicle Technologies Co’s (鴻華先進) models.
Foxtron is a joint venture between Hon Hai and Yulon Motor Co (裕隆汽車). The EVs supplied for Mitsubishi are expected to enter the Australian and New Zealand markets as early as the second half of next year, Hon Hai said.
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