Latest news with #NissanShatai
India Gazette
21-05-2025
- Automotive
- India Gazette
Nissan considering plant closures in Japan, overseas, sources say
TOKYO, Japan: Nissan is reportedly considering shutting down two car assembly plants in Japan and several overseas factories, including in Mexico, as part of a sweeping cost-cutting plan, sources told Reuters. The automaker is reportedly considering the closure of its Oppama plant, which has been operational since 1961, and the Shonan plant, operated by Nissan Shatai, a subsidiary in which Nissan holds a 50 percent stake. If the closures proceed, Nissan would be left with three vehicle assembly plants in Japan, sources said. Outside Japan, Nissan is also considering ending production in South Africa, India, and Argentina and potentially reducing the number of factories in Mexico, according to one of the sources. The Yomiuri newspaper, which first reported the potential plant closures, said two factories in Mexico are being evaluated for shutdown. Nissan issued a statement on its website dismissing the reports as speculative, saying, "At this time, we will not be providing further comments on this matter. We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." The move would mark a significant shift in strategy under new CEO Ivan Espinosa, who outlined aggressive cost-cutting measures earlier this week, including plans to reduce the global workforce by 15 percent and cut production plants to 10 from 17 globally. This approach contrasts sharply with former CEO Makoto Uchida's vision of global expansion and maintaining domestic production levels. In fiscal 2024, Nissan's vehicle sales fell to 3.3 million units, a 42 percent drop from 2017 levels. The company previously announced plans to consolidate production of its Frontier and Navara pickups from Mexico and Argentina into a single hub at its Civac plant in Mexico. Domestically, the potential closures would be Nissan's first since it shuttered its Murayama factory in 2001. The Oppama plant, which has an annual capacity of 240,000 cars and employs around 3,900 workers, was the site where Nissan launched the Leaf, its first mass-market electric vehicle, in 2010. The Shonan plant, which produces commercial vans, has an annual capacity of 150,000 units and employs approximately 1,200 workers.
Auto Blog
20-05-2025
- Automotive
- Auto Blog
Japanese Officials Beg Nissan to Keep Local Factory Open
According to recent reports by Reuters and Nikkei Asia, Japanese automaker Nissan may be shutting down some of its manufacturing operations in Japan and emerging markets as part of its aggressive and ambitious restructuring plan. Sources tell the outlets that two of the brand's Japanese factories, both in the Kanagawa prefecture, are on the chopping block. Specifically, the two plants in question are Nissan's main Oppama plant in Yokosuka and the Shonan plant of its Nissan Shatai unit, a plant that produces commercial vehicles. The two plants comprise a large chunk of Nissan's production capacity in Japan. The loss of the Oppama plant, the first Nissan plant to mass produce electric vehicles, would greatly impact the automaker as it's a popular tourist attraction in the area, has an annual production capacity of around 240,000 vehicles, and employs 3,900 people in manufacturing and research roles. Nissan Oppama Plant — Source: Nissan However, according to reports by the Japanese business publication Kyodo News, some factory workers stated that Nissan told employees at the Oppama plant on Monday, May 19, that reports of its planned closure were not definitive. In addition, Kanagawa prefectural government officials held an emergency meeting the same day to discuss plans to offer reemployment and consultation services to potentially affected employees if the plant closes. 'If they really do close, it will have a huge impact on employment and the economy,' Kanagawa Gov. Yuji Kuroiwa said at the meeting. 'We will consider our options from a multitude of angles.' Kuroiwa also noted that Nissan contacted the prefecture on Saturday after the reports from Reuters and Nikkei surfaced, which was followed by a visit to the prefectural office on Monday to inform them that nothing had been decided. Local government officials reportedly told Nissan that they hoped the automaker would consider the potential consequences if it closed its facilities. During a May 19 press conference, Yokosuka Mayor Katsuaki Kamiji noted that the plant has had a rich history in the city for nearly 60 years and said that he hopes it will be 'restored to its former brilliance.' Nissan Oppama Plant — Source: Nissan Nissan is also considering ending production in other countries The potential plans to close the Japanese plants are related to Nissan CEO Ivan Espinosa's Re:Nissan consolidation plans, which were revealed during a presentation highlighting financial results for the company's 2024-2025 fiscal year. The plans include job cuts affecting about 20,000 people and heavy shifts to its global production capacity, including the shutdown of seven global assembly plants to reduce its global production to just 10 plants by the end of the 2027-2028 fiscal year. According to a source who spoke to Reuters, Nissan is considering shuttering plants in South Africa, India, Argentina, and Mexico. A Nikkei Asia report states that two of the company's three Mexican factories that are on the chopping block include the CIVAC Plant, which has been making vehicles in the country since 1961. Last month, Nissan Latin America said it would consolidate production of its Frontier and Navara pickups from its plants in Mexico and Argentina into a single production hub centered around the plant. Final thoughts The stories that have surfaced through Japanese business news outlets remind me of a quote regarding the ~20K job cuts that Nissan CEO Ivan Espinosa said during his announcement of the Re:Nissan plan last week. 'It is a very, very painful and sad decision to take. We wouldn't be doing this if it were not necessary for the survival of Nissan,' Espinosa said. 'Are we confident that this is enough? The answer is yes, this will be enough to drive the results that we need, but we need to move fast. We want to bring the heartbeat back.' Espinosa and the rest of the Nissan C-Suite have a lot on their hands when it comes to Nissan's future. However, a bloated production capacity is just one of a long list of problems that came long before the Trump Administration's tariff-heavy trade policies. For now, we have to keep an eye on the restructuring process from start to finish and see how things will go for the storied Japanese automaker.
Yahoo
19-05-2025
- Automotive
- Yahoo
Nissan to close two plants in Kanagawa Prefecture
Nissan Motor Company announced that it plans to shut down seven of its current 17 vehicle assembly plants worldwide and make around 20,000 redundancies from its global operations by the 2027 financial year (FY2027), which ends on 31 March 2028. The restructuring is part of its Re:Nissan recovery plan, after the Japanese automaker reported a net loss of JPY 671 billion in FY2024. Unconfirmed reports in Japan, citing an unnamed company source, have suggested that Nissan is considering closing two plants in Kanagawa Prefecture as part of its restructuring plans. The plants said to be marked for closure include the main Oppama plant in Yokosuka, which makes the Leaf, Note and Note Aura models, and the Shonan plant, which makes the NV200 and AD and is controlled by its subsidiary Nissan Shatai Company. The two plants have among the lowest capacity-utilization rates in the company's domestic network, due mainly to weak demand for the models they produce. Nissan has yet to initiate talks with labour unions, suppliers and the local governments, however. Nissan pointed out that it has not named any specific domestic plants that it plans to close, and that the reports are 'speculative and not based on any official information from the company." In terms of overseas facilities, Nissan has already announced that it will close a plant in India and one in Argentina. By FY2027, Nissan plans to cut its global capacity by 30% to 2.5 million units, excluding China, as it focuses more on higher-margin products. "Nissan to close two plants in Kanagawa Prefecture – reports" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
RTÉ News
19-05-2025
- Automotive
- RTÉ News
Nissan considering plant closures in Japan, overseas, sources say
Nissan is considering plans to shut two car assembly plants in Japan and overseas factories, including in Mexico, sources said over the weekend, as part of a cost-cutting plan the company flagged earlier this week. The car maker is mulling closing Japan's Oppama plant, where Nissan started production in 1961, and the Shonan plant operated by Nissan Shatai, in which Nissan is a 50% stakeholder, the sources said, which would leave it with just three vehicle assembly plants in Japan. Overseas, Nissan is considering ending production at plants in South Africa, India and Argentina, and cutting the number of factories in Mexico, one of the sources said. Japan's third-biggest automaker unveiled sweeping new cost cuts last week, saying it would reduce its workforce by around 15% and cut production plants to 10 from 17 globally as it seeks to push through a turnaround. The Yomiuri newspaper, which first reported the automakers' possible closing of plants in Japan and overseas, said two factories in Mexico are under consideration. Nissan said in a statement on its website that reports on the potential closure of certain plants were speculative and not based on any official information of the company. "At this time, we will not be providing further comments on this matter," Nissan said in the statement. "We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." The more aggressive turnaround steps unveiled by new CEO Ivan Espinosa mark a sharp break with Nissan's strategy under his predecessor Makoto Uchida, who had high hopes of expanding global production and had refused to close domestic plants. Nissan's fiscal 2024 sales stood at 3.3 million vehicles, down 42% since the 2017 business year. In its statement, Nissan said it had previously announced it would consolidate production of Nissan Frontier and Navara pickups from Mexico and Argentina into a single production hub centralised around the Civac plant in Mexico. It also said that it had announced in March that French alliance partner Renault would buy out its stake in their joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL). The domestic plant closures would mark Nissan's first since closing its Murayama factory in 2001. Keeping just three home plants open - its Tochigi factory and the Nissan Motor Kyushu and Nissan Shatai Kyushu plants in southern Fukuoka prefecture - would be more than enough to service the domestic market and maintain exports from Japan, one source said. The Oppama plant has annual capacity of around 240,000 cars and employed about 3,900 workers as of end-October. In 2010, it became Nissan's first plant to start producing the Leaf, widely considered the world's first mass-market electric vehicle. The Shonan plant, which produces commercial vans, has an annual capacity of around 150,000 units and employs about 1,200 people.
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Business Standard
19-05-2025
- Automotive
- Business Standard
Nissan plans to close 2 car plants in Japan and overseas, including Mexico
Nissan is considering plans to shut two car assembly plants in Japan and overseas factories, including in Mexico, sources said on Saturday, as part of a cost-cutting plan the company flagged earlier this week. The automaker is mulling closing Japan's Oppama plant, where Nissan started production in 1961, and the Shonan plant operated by Nissan Shatai, in which Nissan is a 50 per cent stakeholder, the sources said, which would leave it with just three vehicle assembly plants in Japan. Japan's third-biggest automaker unveiled sweeping new cost cuts on Tuesday, saying it would reduce its workforce by around 15 per cent and cut production plants to 10 from 17 globally as it seeks to push through a turnaround. The Yomiuri newspaper, which first reported the automakers' possible closing of plants in Japan and overseas, said two factories in Mexico are under consideration. Nissan said in a statement on its website that reports on the potential closure of certain plants were speculative and not based on any official information of the company. "At this time, we will not be providing further comments on this matter," Nissan said in the statement. "We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." The more aggressive turnaround steps unveiled by new CEO Ivan Espinosa mark a sharp break with Nissan's strategy under his predecessor Makoto Uchida, who had high hopes of expanding global production and had refused to close domestic plants. The automaker's fiscal 2024 sales stood at 3.3 million vehicles, down 42 per cent since the 2017 business year. In its statement on Saturday, Nissan said it had previously announced it would consolidate production of Nissan Frontier and Navara pickups from Mexico and Argentina into a single production hub centralised around the Civac plant in Mexico. It also said that it had announced in March that French alliance partner Renault would buy out its stake in their joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL). The domestic plant closures would mark Nissan's first since closing its Murayama factory in 2001. Keeping just three home plants open - its Tochigi factory and the Nissan Motor Kyushu and Nissan Shatai Kyushu plants in southern Fukuoka prefecture - would be more than enough to service the domestic market and maintain exports from Japan, one source said. The Oppama plant has annual capacity of around 240,000 cars and employed about 3,900 workers as of end-October. In 2010, it became Nissan's first plant to start producing the Leaf, widely considered the world's first mass-market electric vehicle. The Shonan plant, which produces commercial vans, has an annual capacity of around 150,000 units and employs about 1,200 people.
