Nissan to end vehicle production at Oppama plant by end of FY 2027
The struggling Japanese automaker will transfer vehicle production from the plant in Kanagawa Prefecture and consolidate it at its subsidiary, Nissan Motor Kyushu Co., in southwestern Japan.
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 automaker said the decision does not affect other facilities and functions around the plant, including the Nissan research center, crash test facility, wharf and test course.
"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.
Nissan 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.
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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