TOKYO, Jul 15 (Alliance News): Nissan Motor Co. announced on Tuesday its decision to halt vehicle production at its historic Oppama plant in Kanagawa Prefecture near Tokyo by the end of fiscal 2027. The move is part of a sweeping restructuring plan aimed at reducing costs and enhancing long-term sustainability following major financial setbacks.
Production operations from the Oppama facility will be transferred to Nissan Motor Kyushu Co., a subsidiary in southwestern Japan. Nissan CEO Ivan Espinosa described the decision as “tough but necessary,” emphasizing its importance in ensuring the company’s future viability.
At a press conference, Espinosa also confirmed that Nissan Shatai Co.’s Shonan plant in Hiratsuka, also in Kanagawa, will be shuttered. However, he assured that there are no plans to close or merge other domestic sites.
Nissan’s restructuring strategy targets a reduction in global production capacity — excluding China — from 3.5 million units to 2.5 million units by fiscal 2027. The automaker also intends to cut around 20,000 jobs worldwide as it copes with declining sales in the US and China. The company posted a net loss of 670.90 billion yen ($4.5 billion) for fiscal 2024.
The automaker is considering downsizing its number of production sites from 17 to 10 globally over the same timeframe.
The shutdown will not affect nearby facilities including Nissan’s research center, crash test facility, wharf, or test course, which will continue to operate.
Nissan stated that discussions with labor unions are underway to determine future employment options for the 2,400 workers currently stationed at the Oppama plant. Espinosa also revealed ongoing negotiations with potential partners regarding future uses of the site.
Founded in 1961, the Oppama plant has a rich legacy, most notably producing the world’s first mass-produced electric vehicle, the Nissan Leaf, since 2010. It currently manufactures the Note compact car.
