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Yomiuri Shimbun
2 days ago
- Automotive
- Yomiuri Shimbun
Nissan Plant ‘Closures': Break away from Negative Cycle and Step up Alliance Strategy
Nissan Motor Co., which has been restructuring its operations, has decided on large-scale closures of its domestic plants for the first time in a quarter of a century. The company should minimize the impact on the local economy around the plants and at the same time hasten a strategy to seek a new alliance partner. Nissan has announced that it will end compact car production at its Oppama plant in Yokosuka, Kanagawa Prefecture, at the end of fiscal 2027. This will effectively be a plant closure. Production of commercial vehicles at a subsidiary's plant in Hiratsuka in the same prefecture will also end in fiscal 2026. Nissan posted a ¥670.8 billion net loss for the fiscal year ending March 31, 2025, due to sluggish global sales. In May, when it announced its financial results, Nissan said it would close seven of its 17 vehicle production plants worldwide. The closure of the Kanagawa Prefecture plants is a part of such efforts. The Oppama plant, which began operations in 1961, is a symbol of Nissan's history, having produced its models including the 'March' and 'Bluebird.' There are said to be about 2,000 companies that do business with Nissan in the prefecture, and the impact on the local community will be significant. It is hoped that Nissan, in close cooperation with local governments and other entities, will take detailed and meticulous measures to alleviate concerns over its restructuring plan, such as by helping employees find new jobs at its business-partner companies and helping small and midsize enterprises procure funds. As a result of this restructuring, Nissan's domestic vehicle production plants will be consolidated into a total of three locations, one in Tochigi Prefecture and the other two in Fukuoka Prefecture. The management team needs to work to rebuild its business so that further restructuring will never occur. In recent years, Nissan's management has fallen into a negative cycle of declining brand power and development capabilities, and sluggish sales. Under its 'Revival Plan,' the large-scale restructuring measures launched by former President Carlos Ghosn in 1999, Nissan achieved a V-shaped recovery in business performance. The company then formed an alliance with France's Renault SA and Mitsubishi Motors Corp. that leapt to become the world's second-largest automotive alliance in the 2010s. However, as a result of pursuing an increase in sales with an unreasonable expansion policy, Nissan's product quality and development capabilities declined. Its brand power also deteriorated through its low-margin, high-volume business approach. It is now said that Nissan has no 'well-selling models' to attract consumers. The company's leadership should reflect sincerely on the chaotic management of the past. Its business will not stabilize unless Nissan proceeds with strengthening its product development capabilities, as well as making thorough efforts to 'stop the bleeding.' The most important issue going forward will be to find a new alliance partner. As the capital relationship with Renault has been drastically reviewed, ties between Nissan and Renault have weakened. The development of electric vehicles and next-generation vehicles, among other products, which will be Nissan's main battleground in the future, will require massive investment. It will be difficult for Nissan to survive on its own. Automobile tariffs imposed by the administration of U.S. President Donald Trump will also be a burden. The hope is that Nissan will look for a wide range of partners, including Honda Motor Co., with which negotiations for a business merger have broken down. (From The Yomiuri Shimbun, July 18, 2025)
New Straits Times
4 days ago
- Automotive
- New Straits Times
Nissan to halt production at Oppama plant
TOKYO: Struggling auto giant Nissan Motor Co Ltd said yesterday it will stop production at its plant in Oppama at the end of its 2027 fiscal year. Nissan posted a net loss of 671 billion yen last year and it has said it would cut 15 per cent of its global workforce. "The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027," Nissan said. Production at the plant outside of Yokohama will be shifted to another existing factory on Kyushu, it said. One of Nissan's six domestic plants, Oppama employed about 3,900 people up to October last year and began operations in 1961, according to its website. It was a "pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world's first mass-market electric vehicle", it said. The heavily indebted carmaker, whose mooted merger with Japanese rival Honda Motor Co Ltd collapsed this year, is slashing production as part of its expensive business turnaround plan. Nissan said in May it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027." Like many peers, Nissan is finding it hard to compete against Chinese electric vehicle brands. The merger with Honda had been seen as a potential lifeline, but talks collapsed in February when the latter proposed making Nissan a subsidiary. Nissan has faced speed bumps in recent years — including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. Ratings agencies have downgraded the firm to "junk", with Moody's citing its "weak profitability" and "ageing model portfolio". This year Nissan shelved plans, only recently agreed, to build a US$1-billion battery plant in southern Japan owing to the tough "business environment". Of Japan's major automakers, Nissan is seen as the most exposed to US President Donald Trump's 25 per cent tariff imposed on imported Japanese vehicles earlier this year. This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts.
Japan Today
4 days ago
- Automotive
- Japan Today
Skidding Nissan to halt production at Oppama plant in Kanagawa Prefecture
Nissan posted a net loss of 671 billion yen ($4.5 billion) last year and it has said it will cut 15 percent of its global workforce Struggling auto giant Nissan said Tuesday it will stop production at its plant at Oppama in Yokosuka, Kanagawa Prefecture, at the end of its 2027 fiscal year. Nissan posted a net loss of 671 billion yen last year and it has said it will cut 15 percent of its global workforce. "The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027," Nissan said in a statement. Production of the plant outside of Yokahama will be shifted to another existing factory in Fukuoka Prefecture, Kyushu, it said. One of Nissan's six domestic plants, Oppama employed around 3,900 people as of October 2024 and began operations in 1961, according to the company's website. It was a "pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world's first mass-market electric vehicle," it said. The heavily indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this year, is slashing production as part of its expensive business turnaround plan. Nissan said in May it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027". Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands. The merger with Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Nissan has faced numerous speed bumps in recent years -- including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "aging model portfolio". This year Nissan shelved plans, only recently agreed, to build a $1-billion battery plant in southern Japan owing to the tough "business environment". Of Japan's major automakers, Nissan is seen as the most exposed to US President Donald Trump's 25-percent tariff imposed on imported Japanese vehicles earlier this year. This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts. One potential solution for Nissan could be Taiwanese electronics behemoth Hon Hai, better known as Foxconn, which assembles iPhones and is expanding into cars. Foxconn said in February it was open to buying Renault's stake in Nissan. © 2025 AFP
Yahoo
5 days ago
- Automotive
- Yahoo
Skidding Nissan to halt production at Japanese plant
Struggling auto giant Nissan said Tuesday it will stop production at its plant at Oppama in Japan at the end of its 2027 fiscal year. Nissan posted a net loss of 671 billion yen ($4.5 billion) last year and it has said it will cut 15 percent of its global workforce. "The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027," Nissan said in a statement. Production of the plant outside of Yokahama will be shifted to another existing factory on the southern Japanese island of Kyushu, it said. One of Nissan's six domestic plants, Oppama exmployed around 3,900 people as of October 2024 and began operations in 1961, according to the company's website. It was a "pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world's first mass-market electric vehicle," it said. The heavily indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this year, is slashing production as part of its expensive business turnaround plan. Nissan said in May it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027". Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands. The merger with Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Nissan has faced numerous speed bumps in recent years -- including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "ageing model portfolio". This year Nissan shelved plans, only recently agreed, to build a $1-billion battery plant in southern Japan owing to the tough "business environment". Of Japan's major automakers, Nissan is seen as the most exposed to US President Donald Trump's 25-percent tariff imposed on imported Japanese vehicles earlier this year. This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts. One potential solution for Nissan could be Taiwanese electronics behemoth Hon Hai, better known as Foxconn, which assembles iPhones and is expanding into cars. Foxconn said in February it was open to buying Renault's stake in Nissan. stu/hmn Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
5 days ago
- Automotive
- Business Times
Nissan to halt production at Japanese plant at Oppama
[TOKYO] Struggling auto giant Nissan said on Tuesday (Jul 15) it will stop production at its plant at Oppama in Japan at the end of its 2027 fiscal year. Nissan posted a net loss of US$4.5 billion last year, and it has said it will cut 15 per cent of its global workforce. 'The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027,' Nissan said in a statement. Production of the plant outside of Yokahama will be shifted to another existing factory on the southern Japanese island of Kyushu, it said. One of Nissan's six domestic plants, Oppama employed around 3,900 people as of October 2024 and began operations in 1961, according to the company's website. It was a 'pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world's first mass-market electric vehicle,' it said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The heavily indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this year, is slashing production as part of its expensive business turnaround plan. Nissan said in May it would 'consolidate its vehicle production plants from 17 to 10 by fiscal year 2027'. Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands. The merger with Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Nissan has faced numerous speed bumps in recent years – including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. Ratings agencies have downgraded the firm to junk, with Moody's citing its 'weak profitability' and 'ageing model portfolio'. This year Nissan shelved plans, only recently agreed, to build a US$1-billion battery plant in southern Japan owing to the tough 'business environment'. Of Japan's major automakers, Nissan is seen as the most exposed to US President Donald Trump's 25-per cent tariff imposed on imported Japanese vehicles earlier this year. This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts. One potential solution for Nissan could be Taiwanese electronics behemoth Hon Hai, better known as Foxconn, which assembles iPhones and is expanding into cars. Foxconn said in February it was open to buying Renault's stake in Nissan. AFP
