Nissan Sends SOS To Apple Supplier? Japan Auto Giant Reportedly Eyes EV Tie-Up With Foxconn To Save Struggling Plant

Nissan Motor (NSANY) has held talks with Taiwan's Hon Hai Precision Industry (HNHPF), better known as Foxconn, to utilize one of the automaker's domestic factories for electric vehicle production, according to a Reuters report on Monday, which cites two sources familiar with the matter.

Nissan's plant Oppama plant, in the port city of Yokosuka, south of Tokyo, is reportedly at risk of closure as part of a sweeping restructuring plan.

In May, CEO Ivan Espinosa announced several changes, including the closure of 17 of Nissan’s factories and a 17% reduction in its workforce, aimed at reviving the automaker. 

If the partnership with Foxconn materializes, it would prevent the plant's closure and mitigate the impact of the restructuring on its 3,900 workers and suppliers.

On Stocktwits, the retail sentiment for Nissan remained 'bearish,' unchanged from a week ago. Nissan's U.S.-listed shares are down 16.7% year-to-date, and those of Hon Hai Precision are up 2.8%.

In May, Nissan's partner Mitsubishi Motors signed a preliminary deal with a Foxconn subsidiary to develop EVs for sale in the Oceania region (Australia and New Zealand).

Foxconn, known as a key supplier to Apple's iPhones and other devices, also produces auto components such as chassis systems, EV platforms, batteries, and motors for several original equipment manufacturers (OEMs).

Meanwhile, Nissan announced on Monday a plan to raise about $1.03 billion by issuing convertible bonds to help fund the company's turnaround plans.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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