Nissan's plants reduction plan may include 2 in Japan, sources say
Nissan Motor plans to reduce its global production facilities as part of a drastic plan to restructure its business. Sources say this may include two plants in Japan.
The struggling Japanese automaker plans to reduce its global group workforce by 20,000 jobs, and consolidate 17 of its Nissan production facilities down to 10 as by fiscal 2027.
Sources say the reduction plan includes the Oppama plant, and the Shonan plant of Nissan's subsidiary Nissan Shatai, both in Kanagawa Prefecture, south of Tokyo.
The Oppama factory has a yearly capacity of 240,000 vehicles, while the Shonan plant's annual capacity is 150,000 units.
Production rates at the two facilities have been low due to Nissan's sluggish sales.
Nissan earlier announced it will pull out of Argentina and India. The company is also considering restructuring its production bases, including those in Mexico.
In the cities that host the Oppama and Shonan plants, municipalities and residents are concerned about potential impacts on employment and local economies.
Nissan intends to give thorough consideration to the restructuring plan as it needs to coordinate with labor unions and other stakeholders.
Nissan commented on media reports of possible closures of some of its plants by saying they are based on speculation and are not based on information it has provided.
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