Latest news with #Nissan
NHK
an hour ago
- Automotive
- NHK
Nissan CEO: decision to end production at 2 plants hard but needed
The head of struggling Japanese automaker Nissan Motor said the decision to cease vehicle production at two domestic factories was hard but needed. The move has raised questions about how many jobs will be retained. "It was a difficult decision for both myself and the company," said Nissan President and CEO Ivan Espinosa. "However, we believe it is necessary for Nissan to overcome its current challenging situation and return to our growth trajectory." Espinosa told reporters on Tuesday that production at its mainstay Oppama Plant near Tokyo will finish at the end of March 2028. He said production will be transferred to facilities in the southwestern prefecture of Fukuoka. Espinosa also said production at a Nissan subsidiary's Shonan Plant near Tokyo will end by March 2027. Nissan aims to turn around its finances amid sluggish sales figures by reorganizing domestic production to cut costs. But the company's labor union has called for continued negotiations, saying the latest decision will heighten worries about the future among workers. Nissan says it plans to protect employment at the Oppama Plant by transferring workers to other factories or operations. The subsidiary, Nissan Shatai, says preserving jobs is its top priority and it will explore all possibilities to do so. But it's unclear how they can achieve that, given Nissan's plans to cut group-wide payroll by 20,000 workers as part of restructuring efforts. As for what to do with the Oppama Plant after production ends, Espinosa said Nissan is considering a variety of scenarios. He said there is room for negotiation if a third party wants to purchase the plant's assets.
Yahoo
2 hours ago
- Automotive
- Yahoo
Honda & Nissan in Discussion to Co-Develop Advanced Auto Software
Honda Motor Co., Ltd. HMC and Nissan Motor Co., Ltd. NSANY are in discussions to jointly develop and share a foundational software platform for advanced vehicle control systems, per sources. The move is part of their effort to catch up with leading U.S. and Chinese automakers in the growing field of software-defined vehicles (SDVs).The two companies aim to introduce vehicles utilizing the new software in the latter half of the decade. As SDVs become more prominent in the global automotive landscape, they require massive data inputs for both development and ongoing operation, making strategic collaboration crucial for accelerating innovation and reducing and several Chinese automakers currently lead in the SDV space, while Toyota and Mazda are also considering adopting shared software strategies. Honda and Nissan's ongoing discussions mark the latest attempt at collaboration, following the end of previous merger talks in February after Nissan declined to become a Honda initiating a feasibility study in March 2024, both automakers have been evaluating potential collaborations in software development and EV charging infrastructure. However, Honda has indicated that it still plans to launch electric vehicles equipped with its proprietary software beginning in separate news, Nissan may begin manufacturing pickup trucks for Honda at its U.S. plants under a proposed strategic agreement. This would allow Honda to diversify its U.S. vehicle lineup, where it currently has limited presence in the pickup segment and mitigate the financial impact of new tariffs. For Nissan, the deal could improve factory utilization, which remains below break-even levels, and help offset declining sales due to its lack of competitive hybrid two companies are currently discussing this potential partnership. Both automakers view the United States as a crucial market, though recent tariff increases on Japanese imports have intensified pressure. The levies are projected to reduce Honda's operating profit by ¥650 billion and Nissan's by up to ¥450 billion in fiscal 2025. A manufacturing agreement between the two could enhance profitability for both firms. HMC & NSANY carry a Zacks Rank #4 (Sell) each at better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY and Aisin Corporation ASEKY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for GELYY's fiscal 2025 sales implies year-over-year growth of 76.25%. EPS estimates for fiscal 2025 and 2026 have improved 27 cents and 47 cents, respectively, in the past seven Zacks Consensus Estimate for ASEKY's fiscal 2026 sales and earnings implies year-over-year growth of 7.32% and 58.89%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Nissan Motor Co. (NSANY) : Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
New Straits Times
4 hours 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.
Auto Blog
4 hours ago
- Automotive
- Auto Blog
Nissan Plans to Shutter Historic Japanese Factory in Cost-Cutting Move
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. View post: Walmart is selling a 'lightweight' $75 mini chainsaw for just $33, and shoppers say it's a 'little powerhouse' Nissan is saying sayonara to a storied facility In a stunning move, Japanese automaker Nissan announced that it plans to cease production at its storied Oppama plant and transfer its operations to reduce its costs and production capacity as part of its dramatic restructuring plans. The plant outside Tokyo has operated since 1961 as Nissan's central facility in Japan and employs about 2,400 employees. However, in a statement dated July 15, the Japanese carmaker said it will cease production by March 2028, a massive move that could leave a noticeable scar on the local economy. 0:07 / 0:09 2025 Nissan Z undercuts Toyota Supra by a surprising amount Watch More This drastic move comes as the automaker implements its Re:Nissan restructuring endeavors. Not long after taking the helm as CEO, Espinosa announced plans to cut 20,000 jobs and consolidate the company's manufacturing from 17 factories to 10. By doing so, Nissan will likely reduce annual production to 2.5 million units from 3.5 million. Nissan Oppama Plant — Source: Nissan Closing Oppama was a hard decision, CEO Espinosa said According to Nissan, at the end of the fiscal year 2027, all production at the Oppama Plant will be transferred to Nissan Motor Kyushu Co., Ltd in Fukuoka Prefecture, western Japan. In its statement, Nissan defended the move by stating that after a thorough assessment, it concluded the move from the Oppama Plant to Nissan Motor Kyushu 'is the most effective solution based on production capacity, cost efficiency, and investment potential,' adding that the transfer will lower its manufacturing costs in Japan, strengthen the competitiveness of its plants, improve the profitability of Nissan products and support the automaker's long-term growth. However, the raw numbers will be revealed during its fiscal Q1 results. Nissan CEO Ivan Espinosa — Source: Nissan However, in prepared remarks included in Nissan's statement, CEO Ivan Espinosa showed some sympathy for the workers who will be affected when the plant completely shutters. 'Today, Nissan made a tough but necessary decision. It wasn't easy—for me or for the company—but I believe it's a vital step toward overcoming our current challenges and building a sustainable future,' he said. 'The Oppama Plant is a proud part of our history, and its legacy will endure. I want to sincerely thank our employees, the local community, and our partners who have supported this plant with dedication and heart. We will continue to operate in the Oppama area with strong support for the local community, as we carry forward the spirit of the Oppama plant and work to restore Nissan's true value.' Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Nissan also added that production at other plants in Japan will not be consolidated and that it will 'explore a wide range of options to determine the most appropriate path forward' for its employees after production ends. Further, it said it will establish and communicate policies to affected employees and begin discussions with their union once decisions are finalized. Nissan Oppama Plant — Source: Nissan Nissan is losing an important, historic facility Nissan's announcement regarding Oppama is a blow to both the company and the region. Opened in 1961 with the production of the Datsun Bluebird, the Oppama plant holds some historical weight for the Yokohama-based automaker. In 2010, it became the first Nissan plant to mass-produce electric vehicles, as Leaf production started at the plant. According to the automaker, it has an annual production capacity of around 240,000 cars and employs 3,900 people in manufacturing and research roles. As a direct result, the shutdown of the Oppama plant could devastate Nissan and the area. The plant is also a popular tourist attraction, and many of Nissan's important parts suppliers are located near the plant. Within its 170 hectares, Oppama is also home to Nissan's research center, testing facilities, and a wharf for car carriers. In its announcement, Nissan said that the Nissan Research Center, GRANDRIVE, the crash test facility, and Oppama Wharf are unaffected and will continue operations. 1962 Datsun Bluebird 1200 Deluxe 'Flower Car' — Source: John Beltz Snyder Nonetheless, Kanagawa prefectural government officials emphasized during a May 19 meeting that the effects will have a sizable impact on the region. Kanagawa Gov. Yuji Kuroiwa noted that if Nissan does close, 'it will have a huge impact on employment and the economy.' Final thoughts The news comes a little more than a week after Reuters and Nikkei reported that Foxconn, the contract electronics manufacturer of items like iPhones and Nintendo Switches, was said to be talking with Nissan to build EVs at Oppama. However, as I mentioned previously, Nissan must overcome more than low sales and a bloated production capacity to save itself; it still has to play ball in its largest market, the United States. Last week, President Trump announced that he planned to impose 25% tariffs on all Japanese exports if a deal isn't made by August 1. Manufacturers like Nissan and its contemporaries, Honda and Toyota, face a 25% tariff on imported cars, regardless of country of origin. In remarks to ABC News, Hideo Kumano, the Japanese chief economist at Dai-ichi Life Research Institute, warned that if U.S. tariffs are imposed on Japanese goods, Japan will likely experience a recession. 'It's inevitable to see some kind of damage,' Kumano told ABC News. 'There is a possibility that we will fall into recession.' About the Author James Ochoa View Profile
Qatar Tribune
6 hours ago
- Automotive
- Qatar Tribune
Struggling Nissan to shut its Oppama plant in Japan to cut costs
Agencies Nissan is set to close its flagship factory in Oppama, Japan, to cut costs, while it will move all its production from that area to another plant in southwestern Japan, the struggling company said on Tuesday. Vehicle production at the Oppama plant in Kanagawa Prefecture, south of Tokyo, will end at the end of the 2027 fiscal year, in March 2028, the Japanese automaker said. After that, all models that have been made or scheduled for production at Oppama will be manufactured at Nissan Motor Kyushu, located in Fukuoka Prefecture. The Oppama plant has been a prized symbol for Nissan Motor Corp., which rolled out its Leaf electric car there in 2010, ahead of key rivals. Chief executive Ivan Espinosa, who took on the job in April, said the decision was extremely difficult, calling the Oppama plant 'an icon for Nissan.' He promised employees that they would be treated fairly and responsibly, with transfer offers to other locations or alternative work in the area, in consultation with the labor union. The plant now employs 2,400 people. 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future,' he said. 'The world is changing by the minute' 'The world is changing by the minute,' he told reporters at a hastily called news conference at Nissan's Yokohama headquarters. Espinosa said the company was in talks about possibly selling the factory land or using it for another purpose. He declined to give details. Even if a buyer is not found, the decision on ending production will not change, he added. The plant's closure was expected, as the maker of the Infiniti luxury models and the March subcompact has repeatedly stated that it is restructuring its operations to boost profitability, including by consolidating production sites. Nissan says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan announced it was slashing approximately 15% of its global workforce, or around 20,000 employees, which would include a 9,000 headcount reduction announced late last year, including in China. The company has been racking up losses, hurt by slipping vehicle sales in China and elsewhere, huge restructuring costs and ballooning inventories.
