Nissan is reportedly in talks to allow Taiwanese electronics giant Foxconn to build electric vehicles at its Oppama plant in Japan, a move that could prevent the facility’s closure. The discussions come amid a sweeping global restructuring plan under new CEO Ivan Espinosa, which includes plant closures and workforce reductions. At the same time, Nissan is moving to raise $4 billion through bond sales to refinance its mounting debt, now downgraded to junk status by all major credit-rating agencies.
Here’s why it matters:
For Nissan dealers, these developments signal potential changes in inventory flow, product strategy, and manufacturer support. If Foxconn begins EV production at the Oppama plant, it could stabilize Nissan’s global operations and eventually improve supply to U.S. showrooms. However, the company’s downgraded credit rating, heavy debt burden, and delayed supplier payments may limit its ability to invest in North American marketing, incentives, or new model launches. As Nissan restructures, U.S. dealers may face short-term uncertainty around vehicle availability and long-term questions about the brand’s competitiveness in a tightening EV market.
Key takeaways:
- Foxconn may build EVs at Nissan’s Oppama plant
Nissan is in talks with Foxconn to use its Oppama facility in Yokosuka for electric vehicle production. This potential partnership could prevent the plant’s closure, which employs approximately 3,900 workers. - Sweeping global restructuring is underway
Under the leadership of CEO Ivan Espinosa, Nissan plans to shut down seven of its 17 global plants and reduce its workforce by 15% as part of a major turnaround plan aimed at improving operational efficiency and profitability. - Nissan launches $4 billion bond sale
The automaker plans to sell multiple tranches of dollar- and euro-denominated bonds, as well as a $1 billion convertible bond, to refinance its existing debt. The bond offering includes aggressive coupon rates ranging from mid-5% to low-8%. - Credit rating downgraded to junk status
All three major rating agencies now classify Nissan’s credit as junk, citing weak cash flow margins and declining sales. Fitch noted that while Nissan’s leverage is low, its operating performance lags behind peers like GM and Ford. - Mitsubishi is already collaborating with Foxconn
Nissan’s alliance partner, Mitsubishi, signed a memorandum with a Foxconn subsidiary in May to source an EV model, suggesting Foxconn’s growing role in Japan’s vehicle manufacturing landscape and the broader shift toward contract-based EV production.
