Latest news with #factoryclosure
The Independent
4 days ago
- Automotive
- The Independent
Nissan to close flagship factory with 3,900 workers to cut costs
Nissan is closing its flagship factory in Oppama, Japan, to cut costs and moving all its production there to another plant in southwestern Japan. 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 Tuesday in a statement. After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, 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. When the Oppama factory opened in 1961, it was one of Japan's first large-scale auto factories and a symbol of Nissan's - and Japan's - global ambitions. Long referred to as Nissan's "mother factory", it employs 3,900 workers and has produced more than 17.8 million vehicles to date. The plant's closure was expected, as the maker of the Infiniti luxury models and March subcompact has said repeatedly that it is restructuring its operations to boost its profitability, including by consolidating production sites. Nissan, based in the port city of Yokohama, says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan said it was slashing about 15% of its global work force, or about 20,000 employees, which would include a 9,000 head count 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. Earlier this year, Nissan said it's reducing the number of its auto plants to 10 from 17 to 'create a leaner, more resilient business.' At that time, it didn't say which plants were being closed but confirmed the closures will include factories in Japan. It's also reducing production capacity to 2.5 million units from 3.5 million. Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded in the previous fiscal year. Its chief executive, Ivan Espinosa, took up the post in April and was set to speak to reporters later Tuesday. He replaced Makoto Uchida, who stepped down to take responsibility for the faltering results. Additional reporting from Reuters.
Motor 1
5 days ago
- Automotive
- Motor 1
Nissan Takes 'Tough But Necessary Decision' to Close a Factory
The 'Re:Nissan' recovery plan, outlined a few months ago, includes reducing the number of production sites from 17 to 10. One of the factories slated for closure has now been identified, with newly appointed CEO Ivan Espinosa calling it a 'tough but necessary decision.' The Oppama Plant, located in the Oppama district, will shut down after Japan's fiscal year 2027, which ends in March 2028. Current models and upcoming vehicles initially planned for Oppama will instead be assembled at the Kyushu site. Nissan's CEO admitted that 'it wasn't easy—for me or for the company' to shutter a plant that has been operational since 1961. Over the past 64 years, more than 17.8 million vehicles have rolled off its assembly line. The factory currently builds the Note and Note Aura superminis, but previously produced the electric Leaf hatchback, the quirky Cube, and the March (Micra). It originally assembled the Datsun Bluebird, a compact, rear-wheel-drive sedan. Photo by: Nissan Approximately 2,400 employees will be affected by the closure. The move is part of a broader strategy to reduce the global workforce by 20,000 by the end of FY2027. Not all job cuts will come from manufacturing, as some will stem from reductions in selling, general, and administrative (SG&A) expenses. Nissan also plans to scale back its research and development operations by shrinking its number of vehicle platforms from 13 to 7 and cutting parts complexity by 70%. Closing the Oppama Plant is among several drastic measures aimed at reducing global production capacity from 3.5 million to 2.5 million units. To grasp the severity of the situation at Nissan, consider that some new model programs have been paused to curb spending. A dedicated team of 3,000 people is now focused exclusively on cost-cutting initiatives. There's also a report about how the Yokohama headquarters could be sold and leased back from the new owner. As for the Oppama site's future, Nissan is evaluating a 'wide range of options.' The closure affects only the factory, as the local research center, crash test facility, proving ground, and 20,000-car wharf will continue operating as usual. Nissan Is In Trouble: Nissan to Suppliers: Will You Take an IOU? Nissan Lost $4.5 Billion Last Year. Here's How It Plans to Survive Source: Nissan Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Yahoo
5 days ago
- Automotive
- Yahoo
Nissan to close its Oppama plant in Japan to cut costs
TOKYO (AP) — Nissan is closing its flagship factory in Oppama, Japan, to cut costs and moving all its production there to another plant in southwestern Japan. 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 Tuesday in a statement. After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, 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. The plant's closure was expected, as the maker of the Infiniti luxury models and March subcompact has said repeatedly that it is restructuring its operations to boost its profitability, including by consolidating production sites. Nissan, based in the port city of Yokohama, says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan said it was slashing about 15% of its global work force, or about 20,000 employees, which would include a 9,000 head count 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. Earlier this year, Nissan said it's reducing the number of its auto plants to 10 from 17 to 'create a leaner, more resilient business.' At that time, it didn't say which plants were being closed but confirmed the closures will include factories in Japan. It's also reducing production capacity to 2.5 million units from 3.5 million. Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded in the previous fiscal year. Its chief executive, Ivan Espinosa, took up the post in April and was set to speak to reporters later Tuesday. He replaced Makoto Uchida, who stepped down to take responsibility for the faltering results. ___ Yuri Kageyama is on Threads: Yuri Kageyama, The Associated Press 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
The Independent
5 days ago
- Automotive
- The Independent
Nissan to close its Oppama plant in Japan to cut costs
Nissan is closing its flagship factory in Oppama, Japan, to cut costs and moving all its production there to another plant in southwestern Japan. 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 Tuesday in a statement. After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, 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. The plant's closure was expected, as the maker of the Infiniti luxury models and March subcompact has said repeatedly that it is restructuring its operations to boost its profitability, including by consolidating production sites. Nissan, based in the port city of Yokohama, says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan said it was slashing about 15% of its global work force, or about 20,000 employees, which would include a 9,000 head count 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. Earlier this year, Nissan said it's reducing the number of its auto plants to 10 from 17 to 'create a leaner, more resilient business.' At that time, it didn't say which plants were being closed but confirmed the closures will include factories in Japan. It's also reducing production capacity to 2.5 million units from 3.5 million. Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded in the previous fiscal year. Its chief executive, Ivan Espinosa, took up the post in April and was set to speak to reporters later Tuesday. He replaced Makoto Uchida, who stepped down to take responsibility for the faltering results. ___
Associated Press
5 days ago
- Automotive
- Associated Press
Nissan to close its Oppama plant in Japan to cut costs
TOKYO (AP) — Nissan is closing its flagship factory in Oppama, Japan, to cut costs and moving all its production there to another plant in southwestern Japan. 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 Tuesday in a statement. After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, 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. The plant's closure was expected, as the maker of the Infiniti luxury models and March subcompact has said repeatedly that it is restructuring its operations to boost its profitability, including by consolidating production sites. Nissan, based in the port city of Yokohama, says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan said it was slashing about 15% of its global work force, or about 20,000 employees, which would include a 9,000 head count 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. Earlier this year, Nissan said it's reducing the number of its auto plants to 10 from 17 to 'create a leaner, more resilient business.' At that time, it didn't say which plants were being closed but confirmed the closures will include factories in Japan. It's also reducing production capacity to 2.5 million units from 3.5 million. Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded in the previous fiscal year. Its chief executive, Ivan Espinosa, took up the post in April and was set to speak to reporters later Tuesday. He replaced Makoto Uchida, who stepped down to take responsibility for the faltering results. ___ Yuri Kageyama is on Threads:
