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Yahoo
a day ago
- Automotive
- Yahoo
Nissan ending production at Japan plant
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Nissan Motor Co. will end vehicle production at its plant in Oppama, Japan, at the end of FY2027, the company announced on July 14. The 18.2 million-square-foot factory began operations in 1961 and has produced 17.8 million vehicles to date. It was also the first plant to produce the Nissan Leaf in 2010, the world's first mass-market electric vehicle. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service The move is part of the automaker's fast-track plan to return to profitability by FY2026, which includes consolidating its global vehicle production footprint from 17 to 10 plants by FY2027. The company will transfer the Oppama plant's production to Nissan Motor Kyushu Co. in Fukuoka, a move it says will help it 'significantly reduce manufacturing costs in Japan,' per the release. Nissan's goal is to reduce global production from 3.5 million units (excluding China) to 2.5 million units while maintaining 100% plant utilization. The automaker said it will not conduct additional production actions in Japan. 'Today, Nissan made a tough but necessary decision,' CEO Ivan Espinosa said in the release. '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.' While Nissan will stop making vehicles in Oppama, it will maintain other operations in the region, including a research center and crash test facility. The company said the estimated 2,400 workers at the Oppama production plant will remain employed until the end of FY2027. Nissan is still finalizing plans on future work arrangements for the affected workers, according to the release. Meanwhile in the U.S., Nissan is delaying the 2028 production launch of two electric SUVs at its Canton, Mississippi, plant by 10 months as part of a strategic decision and not a specific reaction to policy changes, according to the company. In other production consolidation moves, Nissan in May announced it was consolidating production of the Frontier and Navara pickups to its plant in Morelos, Mexico. Production of those vehicles previously were split between the Mexico facility and another plant in Argentina. Also as part of its effort to reduce its manufacturing footprint, Nissan in March sold its 51% stake in Renault Nissan Automotive Indiana Private to its partner, Renault Group. However, Nissan will continue producing vehicles in India through its partnership with Renault. Recommended Reading Nissan delays EV production start at Mississippi plant Sign in to access your portfolio
Yomiuri Shimbun
5 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)
Yomiuri Shimbun
7 days ago
- Automotive
- Yomiuri Shimbun
Nissan Faces Difficult Journey as Firm Carries Out Restructuring Measures
Nissan Motor Co. announced its determination to carry out restructuring measures without exceptions — it will effectively close its Oppama plant in Yokosuka, Kanagawa Prefecture, a symbol of its domestic production, at the end of fiscal 2027 and its Shonan plant in the prefecture by the end of fiscal 2026. However, the road for the firm's revival remains difficult considering the impact of high tariffs imposed by U.S. President Donald Trump's administration and a serious sales slump in China, the world's largest auto market. 'It was a difficult decision for both myself and the company,' Nissan President Ivan Espinosa told a press conference on Tuesday. 'However, we believe it's necessary for Nissan to overcome its current challenging situation and return to a growth trajectory.' The Oppama plant in Kanagawa Prefecture, which is home to the company's global headquarters in Yokohama, had been positioned as a 'mother' plant for establishing the firm's production technology. Taiwan-based major electronics manufacturer Hon Hai Precision Industry Co. was believed to have been hoping for a partnership with Nissan that would have included jointly making electric vehicles at the plant. Espinosa denied any talks about establishing a joint venture or outsourcing production, suggesting that he made the painful choice of closing the plant. Nissan's domestic production capacity is about 1.2 million cars, but the company only produced 640,000 in fiscal 2024. Domestic sales in the January-June period of 2025 are expected to slump to about 220,000 units, the lowest in 30 years. Operating profit in the April-June period of 2025 is expected to fall into the red by about ¥200 billion. U.S. tariffs on imported automobiles could push Nissan's operating profit, representing its core business profit, down by as much as ¥450 billion in the fiscal year ending March 2026. Espinosa said that exports are uncertain considering the U.S. tariff policy. 'The world is changing by the minute.' Nissan's sales volume in China in fiscal 2024 fell 12% from the previous year, hit by the rise of local manufacturers. Sales of the N7 electric sedan, whose development was led by local joint venture Dongfeng Nissan, have been strong. However, fierce price competition has left it uncertain whether the company will be able to secure stable profits. Through a series of restructuring measures, Nissan is hurrying to downsize its excessive production facilities, putting pressure on management. Espinosa explained that with production terminated at its Oppama and Shonan plants, the capacity utilization rate of the remaining 10 factories in Japan and overseas will increase to an average of nearly 100%. However, the financial market still has strong concerns about Nissan's restructuring. The company's share price fell to its lowest level in about 16 years this month, falling below ¥300 at one point. Nissan once aimed to integrate its operations with Honda Motor Co. by establishing a holding company but decided to terminate talks with Honda in February of this year. The Economy, Trade and Industry Ministry and Nissan's main bank, Mizuho Bank, Ltd., have called for the resumption of talks, but Nissan remains committed to improving profitability by closing plants and prioritizing restructuring on its own for the time being.
15-07-2025
- Automotive
Struggling Nissan to End Output at Key Plant in Japan
Yokohama, July 15 (Jiji Press)--Nissan Motor Co. said Tuesday that it will end vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture, south of Tokyo, at the end of fiscal 2027. In addition, Nissan President and CEO Ivan Espinosa told a press conference the same day that vehicle production commissioned to subsidiary Nissan Shatai Co. at the Shonan plant in the Kanagawa city of Hiratsuka will also end in fiscal 2026. Production at the Oppama plant will be transferred to Nissan Motor Kyushu Co. in Fukuoka Prefecture, southwestern Japan, as part of the struggling Japanese automaker's review of production bases for its restructuring. The Oppama plant, which launched operations in 1961, is one of Nissan's main output hubs. With an output capacity of 240,000 units per year, it manufactures passenger cars such as the Note subcompact. In recent years, however, its operation rate has been low. The plant's 2,400 workers will remain employed until the end of fiscal 2027. After that, Nissan plans to relocate them to other plants and nearby facilities. [Copyright The Jiji Press, Ltd.]
15-07-2025
- Automotive
Struggling Nissan to End Output at Oppama Plant
News from Japan Economy Jul 15, 2025 17:55 (JST) Yokohama, July 15 (Jiji Press)--Nissan Motor Co. said Tuesday that it will end vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture, south of Tokyo, at the end of fiscal 2027. In addition, Nissan President Ivan Espinosa told a press conference the same day that vehicle production will also be terminated at the Shonan plant of subsidiary Nissan Shatai Co. in the city of Hiratsuka, Kanagawa. Production at the Oppama plant will be transferred to Nissan Motor Kyushu Co. in Fukuoka Prefecture, southwestern Japan, as part of the struggling Japanese automaker's review of production bases for its restructuring. The Oppama plant is one of Nissan's main output hubs. Nearby facilities such as a research center and a crash test ground will continue operations. "Nissan made a tough but necessary decision," Espinosa said of the Oppama plant's end of production. "It's a vital step a sustainable future." [Copyright The Jiji Press, Ltd.] Jiji Press
