Struggling car brand ‘in talks' to hand huge factory to major tech firm behind Apple iPhones after £4bn losses
NEW LANE Struggling car brand 'in talks' to hand huge factory to major tech firm behind Apple iPhones after £4bn losses
A STRUGGLING car brand is "in talks" to hand a huge factory to a major tech firm behind the Apple iPhones after losing a whopping £4billion.
Japanese car giant Nissan is in talks to let Taiwan's Foxconn use one of its factories to build electric vehicles, according to insiders.
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Nissan had been thinking about closing its Oppama plant
Credit: Getty
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A deal with Taiwan's Foxconn to build EVs at Oppama could save the plant from closure
Credit: Reuters
The deal could throw a lifeline to the factory, which is at risk of shutting down for good.
Nissan had been thinking about closing its Oppama plant, just south of Tokyo, Reuters reported in May.
CEO Ivan Espinosa announced major restructuring plans to help save the struggling carmaker.
The move led seven of Nissan's 17 factories worldwide to cut their workforce by around 15 per cent.
A deal with Taiwan's Foxconn to build EVs at Oppama could save the plant from closure.
This could soften the blow of Nissan's restructuring for the plant's 3,900 workers and suppliers.
The negotiations were first reported late by the Nikkei business daily.
Nissan said the report was based on information it had provided.#
The Sun has contacted Nissan for comment.
It comes after the company's new CEO confirmed it will be axing hundreds of jobs at a UK factory after reporting £4 billion in losses in the last financial year.
Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form
Nissan's Sunderland factory will be axing around 250 jobs as part of a "voluntary leave scheme" which allows employees to choose to leave their role with the company's support.
Earlier this year, the manufacturer announced 20,000 job losses, seven factory closures and a pause on all post-2026 new car development.
It is all part of a restructuring project overseen by CEO Ivan Espinosa after he was appointed in April.
Now, Reuters has reported that the major car manufacturer has asked suppliers to allow it to delay payments in an attempt to free up short-term cash.
According to a source and emails seen by Reuters, Nissan has asked some suppliers in Britain and the European Union to accept delays in payments.
This would give the company more cash on hand at the end of the April-June first quarter.
Requests like this are not uncommon as a means of freeing up cash flow.
In a statement, Nissan told The Sun: 'As we take quick actions under the Re:Nissan plan, we are leveraging the strong and flexible relationships we have built with our suppliers to ensure financial stability and maintain solid foundations for future success.
'With their full agreement, we have incentivised some of our valued suppliers to collaborate under more flexible payment terms, at no cost to them, in order to support free cash flow.
'As previously communicated, our cash position remains strong. We continue to cooperate with our valued suppliers across our operations, including in the UK, where we are looking forward together to the launch of the all-new Nissan LEAF and the arrival of our new e-POWER technology to Qashqai, the highest-volume car built in Britain.'
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