Latest news with #IvanEspinosa
The Irish Sun
3 days ago
- Automotive
- The Irish Sun
Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers
A STRUGGLING car brand will reportedly close another two major plants - days after shutting a flagship factory. The brand is planning to close 3 A major car brand is closing several of its production plants Credit: Getty 3 Two plants will be closed in Mexico Credit: Getty The company launched its Re:Nissan initiative, in which it is earmarking factories across the world for closure. Now, according to Read More on Car News Both factories are set to close by 2027, putting thousands of jobs at risk. The Civac plant has been producing cars since 1966 and was the very first international manufacturing site that It currently produces the South American version of the Frontier, the N18 Versa and the Mexico-only V-Drive. Meanwhile, COMPAS was only opened 10 years ago as a collaboration between Mercedes-Benz and Most read in Motors The plant produced the Mercedes GLB in 2019, the Infiniti QX50 in 2017, and the QX55 in 2021 - all of which are set to end production. The Sun have approached Nissan for comment about the closure. Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form The news comes after Nissan closed its flagship factory in the Kanagawa Prefecture south of Tokyo. The factory will close at the end of the 2027 fiscal year in March 2028. Over 2400 jobs will be lost in the closure, which Nissan says was a 'touch but necessary decision'. Chief Executive Ivan Espinosa said: 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future. 'The world is changing by the minute.' The car manufacturer is planning to reduce its 17 plants down to just 10. Nissan has been battling with falling vehicle sales in China, huge restructuring costs and US President Donald Trump's international tariff war. Trump's tariffs have raised the cost of importing vehicles, causing car sales of many different brands to nosedive across the world. 3 Nissan is closing 7 of its 17 plants Credit: PA
Scottish Sun
3 days ago
- Automotive
- Scottish Sun
Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers
The brand says that closing its flagship plant was a 'tough' decision SHARP TURN Crisis-hit car brand 'to close another two major plants' – days after shutting flagship factory with 2,400 workers A STRUGGLING car brand will reportedly close another two major plants - days after shutting a flagship factory. The brand is planning to close the plants down as part of its huge global restructuring plan. Advertisement 3 A major car brand is closing several of its production plants Credit: Getty 3 Two plants will be closed in Mexico Credit: Getty Nissan has been battling with rising debt and manufacturing in recent years, forcing the company to desperately re-evaluate its business strategy. The company launched its Re:Nissan initiative, in which it is earmarking factories across the world for closure. Now, according to Automotive News,, Nissan is has earmarked two factories in Mexico for closure. Nissan is planning to close its Civac plant in Morelos and the Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Aguascalientes. Advertisement Both factories are set to close by 2027, putting thousands of jobs at risk. The Civac plant has been producing cars since 1966 and was the very first international manufacturing site that Nissan ever owned. It currently produces the South American version of the Frontier, the N18 Versa and the Mexico-only V-Drive. Meanwhile, COMPAS was only opened 10 years ago as a collaboration between Mercedes-Benz and Nissan. Advertisement The plant produced the Mercedes GLB in 2019, the Infiniti QX50 in 2017, and the QX55 in 2021 - all of which are set to end production. The Sun have approached Nissan for comment about the closure. Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form The news comes after Nissan closed its flagship factory in the Kanagawa Prefecture south of Tokyo. The factory will close at the end of the 2027 fiscal year in March 2028. Advertisement Over 2400 jobs will be lost in the closure, which Nissan says was a 'touch but necessary decision'. Chief Executive Ivan Espinosa said: 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future. 'The world is changing by the minute.' The car manufacturer is planning to reduce its 17 plants down to just 10. Advertisement Nissan has been battling with falling vehicle sales in China, huge restructuring costs and US President Donald Trump's international tariff war. Trump's tariffs have raised the cost of importing vehicles, causing car sales of many different brands to nosedive across the world.
Yahoo
4 days 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
7 days ago
- Automotive
- Yomiuri Shimbun
Value of Auto Exports to U.S. Dives as Japanese Manufacturers Eat Tariff Costs to Maintain Current Prices
Three months after the administration of U.S. President Donald Trump slapped additional tariffs of 25% on imported automobiles, the value of Japanese vehicle exports to the United States is plunging as Japanese automakers slash prices of their models in order to avoid increasing prices in the U.S. These automakers are absorbing the tariff costs and trying to preserve sales volume. However, if the high tariffs remain in place, the auto industry – the backbone of the Japanese economy – will inevitably suffer a punishing blow. According to June trade statistics released by the Finance Ministry on Thursday, the volume of Japanese vehicles exported to the United States increased 3.4% from the same month the previous year, but the value of these exports dropped 26.7%. The unit price per vehicle has become nearly 30% cheaper compared to the figure for June 2024. Many major automakers have made concerted efforts to lower the cost of vehicles exported to their U.S. subsidiaries, which in turn pay lower tariff duties to the U.S. government. According to U.S. market research company Cox Automotive, the average price of a new vehicle in the United States as of the end of June had risen 3% to about $49,000 (about ¥7.2 million) compared to June last year. Some automakers had slightly increased their prices, but the average price was similar to before the tariffs kicked in. While automakers are holding consumer prices largely unchanged, they are reducing costs and trying to squeeze out at least a small profit. 'We'll have no option but to implement some steps to address this issue, even if they are stopgap measures,' a senior official of a major carmaker told The Yomiuri Shimbun. Core element The U.S. auto tariffs are also having an impact on Japanese automakers' production networks. Nissan Motor Co. President Ivan Espinosa cited tariffs as one of the reasons, in addition to sluggish sales, for deciding to cease vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture. 'Given the unpredictable nature of the U.S. tariff policies and other external factors, export operations face considerable uncertainty,' Espinosa said Tuesday. 'It is imperative to establish a production capacity that is … supported by a flexible manufacturing system capable of adapting swiftly to external changes.' In 2024, Japan's exports to the United States totaled about ¥21.29 trillion. Auto exports reached about ¥6.26 trillion and accounted for a hefty 30% of the total. About 20,000 to 30,000 components are used for each vehicle, so if auto manufacturers cut production, there also will be a significant impact on parts makers, materials suppliers and other companies involved in the process. The most straightforward method for automakers to lock in profits and maintain supply chains would be to pass on tariff costs through higher consumer prices. However, if one automaker hikes its prices while others do not, that automaker would inevitably face a slump in sales. 'Pricing strategy is a core element of our operations,' a senior official at a Japanese automaker said. 'In this business, quickly adding the full amount of the tariffs onto the price isn't easy to do.' Weaker yen U.S. inflation and fluctuations in foreign exchange markets make it challenging for companies to shift production to the United States to avoid the tariffs. Labor costs are surging in the United States, and investing in plants and equipment to boost production there would come with a huge price tag. As the yen against the U.S. dollar is about ¥40 weaker than it was in 2019 during the first Trump administration, many market observers believe exporting vehicles from Japan is more efficient, even when shipping costs are factored in. However, there are limits to what extent companies can continue to swallow the extra costs inflicted by the tariffs. Honda Motor Co. projects the tariffs will push down its operating profit in the fiscal year ending in March 2026 by ¥650 billion. According to figures released Tuesday by the U.S. Labor Department, the consumer price index in June rose 2.7% from the same month in the previous year. This was higher than May, when 2.4% was logged. The seasonally adjusted CPI for new vehicles dipped 0.3% from the previous month, but industry insiders do not expect this to continue. 'The time for price hikes isn't far away,' a senior official at a Japanese automaker said.
The Advertiser
17-07-2025
- Automotive
- The Advertiser
Nissan to close two factories in Japan
Nissan is in financial hot water, but it is hoping to lower the temperature a tad by dumping two factories in its homeland. The Oppama factory was opened in 1961, and has concentrated on building small cars. During its long history the plant has produced the Bluebird, Pulsar, Sylphy, Primera, Serena, Juke, Leaf, Tiida, March/Micra, and Cube. In 2007 the factory celebrated making its 15 millionth vehicle. Today, though, it produces just the Note (below) and Note Aura, a tall hatch that competes with the Honda Jazz/Fit. Manufacturing will cease in Oppama by March 2028, and Note production will be moved to Nissan's factory in Kyushu. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Around 2400 of the site's 3900 employees will be laid off. Other facilities surrounding the Oppama factory, including research centre, crash test facility, wharf, and Grandrive proving ground will continue to operate. The company also confirmed it would cease production at the factory in Shonan. This plant currently produces the NV200 Vanette and AD wagon van, and is operated by Nissan Shatai, of which Nissan only owns 50 per cent. The AD wagon van, which debuted way back in 2006, will end its production run in October this year, while the NV200's innings will end in March 2027. The current NV200 was launched in 2009, and once served as New York City's official taxi. It will be replaced a new model that's due to released by 2028. It's safe to say both Oppama and Shonan are running well below their maximum of capacity of 240,000 and 150,000 vehicles per year. Closing both plants, and moving their production elsewhere will help Nissan reduce its overcapacity problem and reduce headcount. Once these two factories are closed, Nissan will have three car plants in its homeland: one in Tochigi, and two in Kyushu. As part of its latest turnaround plan, dubbed Re:Nissan, the automaker wants to reduce its production capacity, outside of China, from the current 3.5 million cars per year to 2.5 million. It aims to close seven of its 17 car manufacturing plants, but so far only Shonan and Oppama have been confirmed. A Reuters report in May indicated Nissan is considering closing factories in South Africa and Argentina, and consolidating its manufacturing facilities in Mexico. It will remove the factory in India from its books by selling it to Alliance partner Renault. One plant is officially safe from the gallows: Sunderland, UK, which produces the Qashqai, Juke and Leaf. It's likely the company's factories in the US will be spared the chop too. Nissan has been skating on thin financial ice for about two years, and in May announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled the Re:Nissan recovery plan, which in addition to plant closures will cut its global workforce by 15 per cent or 20,000 people, set up a cost-cutting "transformation office", and has paused development of vehicles and technology due for launch after March 2027. The automaker is also considering selling its headquarters in Yokohama. MORE: Everything Nissan Content originally sourced from: Nissan is in financial hot water, but it is hoping to lower the temperature a tad by dumping two factories in its homeland. The Oppama factory was opened in 1961, and has concentrated on building small cars. During its long history the plant has produced the Bluebird, Pulsar, Sylphy, Primera, Serena, Juke, Leaf, Tiida, March/Micra, and Cube. In 2007 the factory celebrated making its 15 millionth vehicle. Today, though, it produces just the Note (below) and Note Aura, a tall hatch that competes with the Honda Jazz/Fit. Manufacturing will cease in Oppama by March 2028, and Note production will be moved to Nissan's factory in Kyushu. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Around 2400 of the site's 3900 employees will be laid off. Other facilities surrounding the Oppama factory, including research centre, crash test facility, wharf, and Grandrive proving ground will continue to operate. The company also confirmed it would cease production at the factory in Shonan. This plant currently produces the NV200 Vanette and AD wagon van, and is operated by Nissan Shatai, of which Nissan only owns 50 per cent. The AD wagon van, which debuted way back in 2006, will end its production run in October this year, while the NV200's innings will end in March 2027. The current NV200 was launched in 2009, and once served as New York City's official taxi. It will be replaced a new model that's due to released by 2028. It's safe to say both Oppama and Shonan are running well below their maximum of capacity of 240,000 and 150,000 vehicles per year. Closing both plants, and moving their production elsewhere will help Nissan reduce its overcapacity problem and reduce headcount. Once these two factories are closed, Nissan will have three car plants in its homeland: one in Tochigi, and two in Kyushu. As part of its latest turnaround plan, dubbed Re:Nissan, the automaker wants to reduce its production capacity, outside of China, from the current 3.5 million cars per year to 2.5 million. It aims to close seven of its 17 car manufacturing plants, but so far only Shonan and Oppama have been confirmed. A Reuters report in May indicated Nissan is considering closing factories in South Africa and Argentina, and consolidating its manufacturing facilities in Mexico. It will remove the factory in India from its books by selling it to Alliance partner Renault. One plant is officially safe from the gallows: Sunderland, UK, which produces the Qashqai, Juke and Leaf. It's likely the company's factories in the US will be spared the chop too. Nissan has been skating on thin financial ice for about two years, and in May announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled the Re:Nissan recovery plan, which in addition to plant closures will cut its global workforce by 15 per cent or 20,000 people, set up a cost-cutting "transformation office", and has paused development of vehicles and technology due for launch after March 2027. The automaker is also considering selling its headquarters in Yokohama. MORE: Everything Nissan Content originally sourced from: Nissan is in financial hot water, but it is hoping to lower the temperature a tad by dumping two factories in its homeland. The Oppama factory was opened in 1961, and has concentrated on building small cars. During its long history the plant has produced the Bluebird, Pulsar, Sylphy, Primera, Serena, Juke, Leaf, Tiida, March/Micra, and Cube. In 2007 the factory celebrated making its 15 millionth vehicle. Today, though, it produces just the Note (below) and Note Aura, a tall hatch that competes with the Honda Jazz/Fit. Manufacturing will cease in Oppama by March 2028, and Note production will be moved to Nissan's factory in Kyushu. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Around 2400 of the site's 3900 employees will be laid off. Other facilities surrounding the Oppama factory, including research centre, crash test facility, wharf, and Grandrive proving ground will continue to operate. The company also confirmed it would cease production at the factory in Shonan. This plant currently produces the NV200 Vanette and AD wagon van, and is operated by Nissan Shatai, of which Nissan only owns 50 per cent. The AD wagon van, which debuted way back in 2006, will end its production run in October this year, while the NV200's innings will end in March 2027. The current NV200 was launched in 2009, and once served as New York City's official taxi. It will be replaced a new model that's due to released by 2028. It's safe to say both Oppama and Shonan are running well below their maximum of capacity of 240,000 and 150,000 vehicles per year. Closing both plants, and moving their production elsewhere will help Nissan reduce its overcapacity problem and reduce headcount. Once these two factories are closed, Nissan will have three car plants in its homeland: one in Tochigi, and two in Kyushu. As part of its latest turnaround plan, dubbed Re:Nissan, the automaker wants to reduce its production capacity, outside of China, from the current 3.5 million cars per year to 2.5 million. It aims to close seven of its 17 car manufacturing plants, but so far only Shonan and Oppama have been confirmed. A Reuters report in May indicated Nissan is considering closing factories in South Africa and Argentina, and consolidating its manufacturing facilities in Mexico. It will remove the factory in India from its books by selling it to Alliance partner Renault. One plant is officially safe from the gallows: Sunderland, UK, which produces the Qashqai, Juke and Leaf. It's likely the company's factories in the US will be spared the chop too. Nissan has been skating on thin financial ice for about two years, and in May announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled the Re:Nissan recovery plan, which in addition to plant closures will cut its global workforce by 15 per cent or 20,000 people, set up a cost-cutting "transformation office", and has paused development of vehicles and technology due for launch after March 2027. The automaker is also considering selling its headquarters in Yokohama. MORE: Everything Nissan Content originally sourced from: Nissan is in financial hot water, but it is hoping to lower the temperature a tad by dumping two factories in its homeland. The Oppama factory was opened in 1961, and has concentrated on building small cars. During its long history the plant has produced the Bluebird, Pulsar, Sylphy, Primera, Serena, Juke, Leaf, Tiida, March/Micra, and Cube. In 2007 the factory celebrated making its 15 millionth vehicle. Today, though, it produces just the Note (below) and Note Aura, a tall hatch that competes with the Honda Jazz/Fit. Manufacturing will cease in Oppama by March 2028, and Note production will be moved to Nissan's factory in Kyushu. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Around 2400 of the site's 3900 employees will be laid off. Other facilities surrounding the Oppama factory, including research centre, crash test facility, wharf, and Grandrive proving ground will continue to operate. The company also confirmed it would cease production at the factory in Shonan. This plant currently produces the NV200 Vanette and AD wagon van, and is operated by Nissan Shatai, of which Nissan only owns 50 per cent. The AD wagon van, which debuted way back in 2006, will end its production run in October this year, while the NV200's innings will end in March 2027. The current NV200 was launched in 2009, and once served as New York City's official taxi. It will be replaced a new model that's due to released by 2028. It's safe to say both Oppama and Shonan are running well below their maximum of capacity of 240,000 and 150,000 vehicles per year. Closing both plants, and moving their production elsewhere will help Nissan reduce its overcapacity problem and reduce headcount. Once these two factories are closed, Nissan will have three car plants in its homeland: one in Tochigi, and two in Kyushu. As part of its latest turnaround plan, dubbed Re:Nissan, the automaker wants to reduce its production capacity, outside of China, from the current 3.5 million cars per year to 2.5 million. It aims to close seven of its 17 car manufacturing plants, but so far only Shonan and Oppama have been confirmed. A Reuters report in May indicated Nissan is considering closing factories in South Africa and Argentina, and consolidating its manufacturing facilities in Mexico. It will remove the factory in India from its books by selling it to Alliance partner Renault. One plant is officially safe from the gallows: Sunderland, UK, which produces the Qashqai, Juke and Leaf. It's likely the company's factories in the US will be spared the chop too. Nissan has been skating on thin financial ice for about two years, and in May announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled the Re:Nissan recovery plan, which in addition to plant closures will cut its global workforce by 15 per cent or 20,000 people, set up a cost-cutting "transformation office", and has paused development of vehicles and technology due for launch after March 2027. The automaker is also considering selling its headquarters in Yokohama. MORE: Everything Nissan Content originally sourced from:
