Nissan scores lifeline from unexpected brand: Foxconn throws Japanese giant an opportunity to save its historic factory

Following news that Mitsubishi will be sourcing a Foxconn-built EV from a Taiwanese factory for the Australian market in the future, industry sources have said Foxconn is looking to make the dramatic move to save Nissan's embattled historic Japanese factory.

Nissan announced that as part of sweeping re-structures off the back of a US$5.26 billion loss at the end of the last Japanese financial year, it may have to close seven factories including its historic Oppama plant, which has produced cars since 1961.

The Oppama plant used to build the Nissan Leaf, but now only produces the Note hatchback and its Aura crossover relation for the Japanese domestic market.

Nikkei Asia reported Foxconn is in talks with Nissan to acquire a share in the factory, with plans to build Foxconn-designed EVs at the plant.

According to Reuters Nissan did not deny the report, but said it was not based on official communications from the automaker, while Foxconn is yet to comment.

In February Foxconn confirmed it was considering buying a stake in Nissan after a merger deal with Honda fell through, but that it preferred entering into a joint-venture to co-produce models. It already has such a deal with Nissan’s alliance partner, Mitsubishi, although it is understood these vehicles won’t necessarily be built in a Mitsubishi plant.

The Taiwanese company offers several vehicle blueprints based on modular platforms, this includes a small SUV, mid-size SUV, executive sedan, and large SUV. Interestingly it also offers a commuter bus, mid-size bus and ute.

Foxconn, which has long been one of the world’s largest builders of electronics, sees the auto sector as an area for its future growth. Its existing deal with Mitsubishi will produce a Taiwan-built, Mitsubishi-branded model due in Australia in the second half of 2026.

The tie-up solves a significant issue for Mitsubishi in Australia. It is cost-constrained when competing with Chinese plug-in hybrids with its Japan-built Outlander. It will now have to lean on more expensive Renault-sourced alternatives to the once-popular ASX, as the Thai-built and delivered XForce would not necessarily be up to the task of meeting Australian ADRs, or have the ability to score well in stringent ANCAP tests.

This is despite the fact that Mitsubishi deploys a new emissions-busting plugless hybrid tech in the Thai market, which would otherwise prove popular with Australian buyers.

The new Foxconn/Nissan tie-up seems to indicate Nissan will seek its own versions of the Foxconn EV models, although there’s no official information on the tie-up just yet.

Nissan continues a downward slide in Australia, down 17.3 per cent with its X-Trail mid-size SUV being its best-selling product. The ageing Patrol 4x4 and Navara ute are also continuing to deliver for the brand as it waits for new-generation versions.

The mainstream Juke, Pathfinder, and Qashqai are struggling for traction as Chinese rivals close in.

Nissan’s continued slide recently meant it has been ousted from Australia’s top 10 automakers to make way for the rise of GWM, MG, and BYD.

Whether the incoming new-generation Navara, Patrol, Leaf, and possibly now a Foxconn-based EV can help it claw back volume remains to be seen.