Nissan CEO: decision to end production at 2 plants hard but needed
"It was a difficult decision for both myself and the company," said Nissan President and CEO Ivan Espinosa. "However, we believe it is necessary for Nissan to overcome its current challenging situation and return to our growth trajectory."
Espinosa told reporters on Tuesday that production at its mainstay Oppama Plant near Tokyo will finish at the end of March 2028.
He said production will be transferred to facilities in the southwestern prefecture of Fukuoka.
Espinosa also said production at a Nissan subsidiary's Shonan Plant near Tokyo will end by March 2027.
Nissan aims to turn around its finances amid sluggish sales figures by reorganizing domestic production to cut costs.
But the company's labor union has called for continued negotiations, saying the latest decision will heighten worries about the future among workers.
Nissan says it plans to protect employment at the Oppama Plant by transferring workers to other factories or operations.
The subsidiary, Nissan Shatai, says preserving jobs is its top priority and it will explore all possibilities to do so.
But it's unclear how they can achieve that, given Nissan's plans to cut group-wide payroll by 20,000 workers as part of restructuring efforts.
As for what to do with the Oppama Plant after production ends, Espinosa said Nissan is considering a variety of scenarios. He said there is room for negotiation if a third party wants to purchase the plant's assets.
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