Reference News Network, October 10 report. According to the Tokyo Television website on October 8, Tokyo Television recently learned that Hon Hai Precision Industry Co., Ltd., a major electronics manufacturer in Taiwan, has decided to abandon the acquisition of the Nissan's Funabashi plant. Nissan, which is facing business difficulties, had previously decided to close its main production base, the Funabashi plant. While Nissan explores the possibility of cooperating with Hon Hai in the field of electric vehicles at the Funabashi plant, it also continues to negotiate the overall sale of the factory.
According to reports, sources said that Hon Hai started negotiations with Nissan around May regarding the acquisition of the Funabashi plant. The negotiation content involved 540,000 square meters of land, factories, and production equipment, excluding research institutes and test tracks, as well as some employees of the factory being taken over by Hon Hai.
It is reported that the selling price proposed by Nissan far exceeds 10 billion yen (100 yen is approximately 4.65 Chinese yuan - note from this site). According to the route price and public land price in the surrounding area, the market value of the land is about 30 to 40 billion yen. Even if the cost of some aging equipment is included, this transaction is not cheap. However, for Hon Hai, having a local factory is necessary to smoothly carry out electric vehicle manufacturing business in Japan. The Funabashi plant was once Nissan's base for producing electric vehicles, and buying the entire plant also makes sense logically, so Hon Hai had shown a willingness to accept even under unfavorable conditions.
On July 15, Nissan's president, Ivan Espinosa, announced at a press conference that the Funabashi plant would cease production by the end of 2027, and stated, "We are considering selling the asset or changing its use." Around this period, Nissan began negotiations with several other potential buyers besides Hon Hai regarding the sale, and has not given a clear response to Hon Hai. On the other hand, Hon Hai, eager to expand its business, became impatient with Nissan's continuous delay in negotiations and has already suspended the negotiations in mid-September.
The report said that a Nissan source said: "There are voices within Nissan questioning 'why not accept Hon Hai's proposal'. Perhaps the current management does not want to be seen as being saved by Hon Hai. I have not heard any news about progress in Nissan's negotiations with other potential buyers."
When asked about the status of the Funabashi plant sale negotiations, Nissan's public relations department replied: "We are exploring the possibility of selling or reusing the factory's assets. Regarding the future of the Funabashi plant, we are discussing various possible solutions with external parties." Regarding whether the negotiation between Nissan and Hon Hai has indeed broken down, Nissan did not comment. (Translated by Ma Xiaoyun)
Original: https://www.toutiao.com/article/7559425225922773542/
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