TOKYO, Jul 15 : Nissan Motor Co. said Tuesday that it will end vehicle production at its flagship Oppama plant in Kanagawa Prefecture near Tokyo by the end of fiscal 2027, transferring the operation to a factory in southwestern Japan, as part of restructuring efforts.
The struggling automaker will consolidate the production of current models and those set for production at the Oppama plant at its subsidiary, Nissan Motor Kyushu Co.
“Nissan made a tough but necessary decision…but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future,” Nissan CEO Ivan Espinosa said in a statement.
The company is also slated to shutter the Shonan plant of its unit, Nissan Shatai Co., located in Hiratsuka, also in Kanagawa, but does not plan on closing or integrating any other domestic locations, Espinosa said during a press conference.
Nissan has said it aims to reduce its global production capacity from 3.5 million units excluding China to 2.5 million units and cut 20,000 jobs globally. The automaker logged a net loss of 670.90 billion yen ($4.5 billion) for fiscal 2024, hit by poor sales in the United States and China.
To achieve its restructuring targets, Nissan is also considering reducing the number of its production sites from 17 to 10 at home and abroad by fiscal 2027.
The decision to cease vehicle production does not affect other facilities and functions around the Oppama plant, including the Nissan research center, crash test facility, wharf and test course, according to the automaker.
The company said it will hold talks with its labor union about the future of the plant’s workers, currently totaling around 2,400, beyond the end of fiscal 2027.
Nissan is also in negotiations with several partners about how to utilize the factory in the future, according to Espinosa.
The Oppama plant in Yokosuka started operations in 1961 and is home to the world’s first mass-produced electric vehicle Leaf, produced since 2010. It currently produces the Note compact car.
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