Nissan to cease auto production at mainstay plant in Japan
The struggling Japanese automaker said on Tuesday that production at Oppama in Kanagawa Prefecture will be halted at the end of March 2028.
Nissan also said it would transfer production to facilities run by the company's unit in Fukuoka Prefecture, southwestern Japan.
It said the research center, the crash test site and other facilities on the plant's compound will be retained and will continue to operate as before.
The carmaker said it will consider a wide range of options on how to utilize the plant in the future.
To achieve its restructuring target, Nissan earlier announced that it will cut its group-wide payroll by 20,000 workers and reduce the number of factories by seven in and outside Japan.
Nissan President and CEO Ivan Espinosa told reporters: "It was a difficult decision for both myself and the company. However, we believe it is necessary for Nissan to overcome its current challenging situation and return to our growth trajectory."
The Oppama plant, which began operation in 1961, rolled out many of Nissan's signature models, such as the Bluebird and the March.
However, in the face of slumping business in recent years, the plant's low operation rate was posing a major challenge.
The plant currently employs around 2,400 people.
Nissan said it will retain the workforce until the end of March 2028 and notify workers as soon as the company comes up with specific future plans.
Nissan said vehicle production will also be terminated at a Nissan subsidiary's Shonan plant near Tokyo.
Espinosa said, "There will be no other reduction or consolidation of vehicle production sites in Japan."
He added Nissan will announce any decision on the closure of overseas production bases at the appropriate time.
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