Foxconn has walked away from negotiations to acquire Nissan Motor’s Oppama plant in Japan, ending discussions that might have saved the factory from closure, Tokyo TV reported. The Taiwanese electronics giant abandoned talks in mid-September after the Japanese automaker repeatedly delayed negotiations.
Nissan sought more than ¥100 billion ($654 million) for the Yokosuka facility, according to the report. That figure sharply exceeds the ¥30-40 billion ($196-262 million) value based on local land prices, making it an unattractive proposition even when accounting for the plant’s aging equipment.
The collapse leaves Nissan, which posted a record ¥750 billion ($4.9 billion) loss last fiscal year, without viable alternatives for the site. Internal voices at Nissan have questioned management’s reluctance to accept Foxconn’s terms, with some suggesting leadership feared the optics of accepting a rescue deal from the contract manufacturer.
Nissan plans to shutter the Oppama plant by March 2028 as part of broader cost-cutting measures that include eliminating 20,000 jobs globally. The facility, which once produced the Leaf electric vehicle, has been running at just 40% capacity—well below the 80% threshold needed for profitability.
