Struggling Nissan to end output at key plant in Japan
Nissan Motor Co. said Tuesday that it will end vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture, south of Tokyo, at the end of fiscal 2027.
In addition, Nissan President and CEO Ivan Espinosa told a press conference the same day that vehicle production commissioned to subsidiary Nissan Shatai Co. at the Shonan plant in the Kanagawa city of Hiratsuka will also end in fiscal 2026.
Production at the Oppama plant will be transferred to Nissan Motor Kyushu Co. in Fukuoka Prefecture, southwestern Japan, as part of the struggling Japanese automaker's review of production bases for its restructuring.
The Oppama plant, which launched operations in 1961, is one of Nissan's main output hubs. With an output capacity of 240,000 units per year, it manufactures passenger cars such as the Note subcompact. In recent years, however, its operation rate has been low.
The plant's 2,400 workers will remain employed until the end of fiscal 2027. After that, Nissan plans to relocate them to other plants and nearby facilities.
Yokosuka Mayor Katsuaki Kamiji released a statement saying, "The loss of a manufacturing base that has been at the centre of our local employment is extremely regrettable."
Nissan will explore ways to utilise the Oppama plant after output ends, including selling the facility. Nearby facilities such as a research centre and a crash test ground will continue operations.
At the press conference, Espinosa said that the decision to end the Oppama plant's production involves considerable hardship, but that it is necessary for Nissan to overcome its current challenging situation and return to a growth trajectory.
Nissan has no plans to shut down or consolidate other vehicle production plants in Japan.
Espinosa said that the automaker is in discussions with several partners on the future use of the Oppama plant, while denying that it is discussing setting up a joint venture with or outsourcing production to other companies.
Nissan is believed to be in talks with companies including Taiwanese contract electronics manufacturer Hon Hai Precision Industry Co.
In May, Nissan said that it plans to reduce the number of vehicle plants worldwide from 17 to 10 by fiscal 2027. Many had been focusing on whether the automaker would axe plants in its birthplace of Kanagawa.
The firm has faced management difficulties due to sluggish sales in the United States and China, reflecting delays in releasing new vehicle models. It incurred a net loss of about 670 billion yen in fiscal 2024.
[Copyright The Jiji Press, Ltd.]
