Nissan to close two factories in Japan
The Oppama factory was opened in 1961, and has concentrated on building small cars. During its long history the plant has produced the Bluebird, Pulsar, Sylphy, Primera, Serena, Juke, Leaf, Tiida, March/Micra, and Cube. In 2007 the factory celebrated making its 15 millionth vehicle.
Today, though, it produces just the Note (below) and Note Aura, a tall hatch that competes with the Honda Jazz/Fit. Manufacturing will cease in Oppama by March 2028, and Note production will be moved to Nissan's factory in Kyushu.
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Around 2400 of the site's 3900 employees will be laid off. Other facilities surrounding the Oppama factory, including research centre, crash test facility, wharf, and Grandrive proving ground will continue to operate.
The company also confirmed it would cease production at the factory in Shonan. This plant currently produces the NV200 Vanette and AD wagon van, and is operated by Nissan Shatai, of which Nissan only owns 50 per cent.
The AD wagon van, which debuted way back in 2006, will end its production run in October this year, while the NV200's innings will end in March 2027. The current NV200 was launched in 2009, and once served as New York City's official taxi. It will be replaced a new model that's due to released by 2028. Supplied Credit: CarExpert
It's safe to say both Oppama and Shonan are running well below their maximum of capacity of 240,000 and 150,000 vehicles per year.
Closing both plants, and moving their production elsewhere will help Nissan reduce its overcapacity problem and reduce headcount. Once these two factories are closed, Nissan will have three car plants in its homeland: one in Tochigi, and two in Kyushu.
As part of its latest turnaround plan, dubbed Re:Nissan, the automaker wants to reduce its production capacity, outside of China, from the current 3.5 million cars per year to 2.5 million.
It aims to close seven of its 17 car manufacturing plants, but so far only Shonan and Oppama have been confirmed.
A Reuters report in May indicated Nissan is considering closing factories in South Africa and Argentina, and consolidating its manufacturing facilities in Mexico. It will remove the factory in India from its books by selling it to Alliance partner Renault. Supplied Credit: CarExpert
One plant is officially safe from the gallows: Sunderland, UK, which produces the Qashqai, Juke and Leaf. It's likely the company's factories in the US will be spared the chop too.
Nissan has been skating on thin financial ice for about two years, and in May announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025.
In response, new Nissan CEO Ivan Espinosa unveiled the Re:Nissan recovery plan, which in addition to plant closures will cut its global workforce by 15 per cent or 20,000 people, set up a cost-cutting 'transformation office', and has paused development of vehicles and technology due for launch after March 2027.
The automaker is also considering selling its headquarters in Yokohama.
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