Nissan Stock Slips On Reports Of Talks With Foxconn To Collaborate On EV Production In Japan

(RTTNews) - Japanese automaker Nissan Motor Co Ltd. (NSANF.PK, NSANY.PK) is in talks with Taiwan's electronics major Foxconn to partner on the production of electric vehicles or EVs in Japan, Nikkei reported. The potential joint venture collaboration is expected to save Nissan's Oppama plant from the risk of closure.

Following the news, Nissan Motor shares closed Monday's trading in Tokyo at 336.90 yen, down 5 percent.

Under the proposed partnership, Foxconn would produce its own EVs at Oppama plant. There was another report stating that Foxconn was considering a plan to buy a portion of the Oppama plant.

The struggling Japanese automaker, which reported loss of 670 billion yen for the latest fiscal year, had announced its turnaround plan in May, dubbed the 'Re:Nissan' recovery initiative, including plant closures and job cuts, with the goal of returning to profitability by fiscal year 2026. The Oppama plant is in the city of Yokosuka, south of Tokyo.

The company's plans reportedly include closing seven of its 17 factories across the world and to reduce workforce by around 15% including the Oppama plant's 3,900 employees and suppliers. The company also aims to suspend new product development beyond 2026.

In related developments, Nissan had previously said it was weighing options to integrate its long-standing Chinese joint venture partner, Dongfeng, into its global manufacturing network as part of the broad cost-cutting and restructuring effort. Under the plan, Dongfeng is expected to share production facilities within Nissan's global operations.

In late May, Bloomberg had reported that Nissan was planning to raise more than one trillion yen through debt and asset sales, and that the funding could be backed by UK Goevernment.