Struggling with prolonged financial headwinds, Nissan Motor Co. has announced plans to shutter one of its core production sites, the Oppama plant, by March 2028. Talks to sell the facility to Taiwan's Foxconn, a major electronics and electric vehicle manufacturer, have collapsed after months of stalled negotiations.
According to a report by TV Tokyo, Foxconn began discussions in May 2025 to acquire the aging Oppama site, which includes 540,000 square meters of land, production facilities, buildings, and a partial transfer of employees. While Nissan had proposed a sale price exceeding JPY100 billion (approx. US$655 million), the talks broke down in September 2025 after Foxconn withdrew its bid, citing repeated delays and a lack of progress.
Real estate experts noted that the market value of the land alone was estimated between JPY30 billion and JPY40 billion, based on local benchmarks. Even with the inclusion of depreciated manufacturing equipment, the proposed price was seen as excessive.
Foxconn sought a foothold in Japanese EV market
Despite the steep valuation, Foxconn had been keen to establish a local manufacturing presence in Japan as part of its push to expand electric vehicle (EV) contract production globally. Acquiring a legacy production site from Nissan, once a symbol of Japan's automotive strength, would have offered a fast-track entry into the Japanese market.
People familiar with the negotiations say that Foxconn remained open to less favorable terms to secure the facility, aligning with its long-term strategy. However, Nissan's ongoing talks with multiple potential buyers caused the automaker to delay its response, leading Foxconn to exit the negotiations altogether.
Internal resistance and image concerns at Nissan
Nissan CEO Ivan Espinosa publicly confirmed on July 15, 2025, that production at Oppama would cease by the end of fiscal year 2027 (March 2028) and stated that the company was exploring the site's future, either through sale or repurposing, via negotiations with several partners.
Sources close to the matter indicated that some within Nissan's leadership questioned the decision to pass on Foxconn's proposal, especially given the company's financial state. However, others within the executive ranks reportedly expressed concern that selling to Foxconn could be perceived as a bailout, something the current leadership may have wanted to avoid.
That said, negotiations with alternative buyers appear to have made little progress, further complicating the plant's future.
While the production of complete vehicles is scheduled to end at Oppama by March 2028, Nissan plans to retain some manufacturing operations at the site, including the production of plastic components and paint-related processes. The exact timing of the shutdown is expected to be finalized by the end of October 2025.
When asked about the failed Foxconn deal, Nissan's public relations team declined to comment on specific counterparties, stating only that the company is reviewing potential asset sales and exploring options for repurposing the site in collaboration with external partners.
For now, the future of the historic Oppama facility, once a major production hub for Nissan's passenger vehicles, remains uncertain.
Article translated by Elaine Chen and edited by Jerry Chen
