Nissan considering plant closures in Japan, overseas, sources say

India Gazette

21-05-2025

TOKYO, Japan: Nissan is reportedly considering shutting down two car assembly plants in Japan and several overseas factories, including in Mexico, as part of a sweeping cost-cutting plan, sources told Reuters.
The automaker is reportedly considering the closure of its Oppama plant, which has been operational since 1961, and the Shonan plant, operated by Nissan Shatai, a subsidiary in which Nissan holds a 50 percent stake. If the closures proceed, Nissan would be left with three vehicle assembly plants in Japan, sources said.
Outside Japan, Nissan is also considering ending production in South Africa, India, and Argentina and potentially reducing the number of factories in Mexico, according to one of the sources.
The Yomiuri newspaper, which first reported the potential plant closures, said two factories in Mexico are being evaluated for shutdown.
Nissan issued a statement on its website dismissing the reports as speculative, saying, "At this time, we will not be providing further comments on this matter. We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary."
The move would mark a significant shift in strategy under new CEO Ivan Espinosa, who outlined aggressive cost-cutting measures earlier this week, including plans to reduce the global workforce by 15 percent and cut production plants to 10 from 17 globally. This approach contrasts sharply with former CEO Makoto Uchida's vision of global expansion and maintaining domestic production levels.
In fiscal 2024, Nissan's vehicle sales fell to 3.3 million units, a 42 percent drop from 2017 levels. The company previously announced plans to consolidate production of its Frontier and Navara pickups from Mexico and Argentina into a single hub at its Civac plant in Mexico.
Domestically, the potential closures would be Nissan's first since it shuttered its Murayama factory in 2001. The Oppama plant, which has an annual capacity of 240,000 cars and employs around 3,900 workers, was the site where Nissan launched the Leaf, its first mass-market electric vehicle, in 2010. The Shonan plant, which produces commercial vans, has an annual capacity of 150,000 units and employs approximately 1,200 workers.