Latest news with #NissanMotorCorp.
Qatar Tribune
7 days ago
- Automotive
- Qatar Tribune
Struggling Nissan to shut its Oppama plant in Japan to cut costs
Agencies Nissan is set to close its flagship factory in Oppama, Japan, to cut costs, while it will move all its production from that area to another plant in southwestern Japan, the struggling company said on Tuesday. 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. After that, all models that have been made or scheduled for production at Oppama will be manufactured at Nissan Motor Kyushu, located 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. Chief executive Ivan Espinosa, who took on the job in April, said the decision was extremely difficult, calling the Oppama plant 'an icon for Nissan.' He promised employees that they would be treated fairly and responsibly, with transfer offers to other locations or alternative work in the area, in consultation with the labor union. The plant now employs 2,400 people. 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future,' he said. 'The world is changing by the minute' 'The world is changing by the minute,' he told reporters at a hastily called news conference at Nissan's Yokohama headquarters. Espinosa said the company was in talks about possibly selling the factory land or using it for another purpose. He declined to give details. Even if a buyer is not found, the decision on ending production will not change, he added. The plant's closure was expected, as the maker of the Infiniti luxury models and the March subcompact has repeatedly stated that it is restructuring its operations to boost profitability, including by consolidating production sites. Nissan says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan announced it was slashing approximately 15% of its global workforce, or around 20,000 employees, which would include a 9,000 headcount 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.
Euronews
15-07-2025
- Automotive
- Euronews
Nissan is closing flagship Oppama plant in Japan to cut costs
Vehicle production at the Oppama plant in Kanagawa Prefecture, south of Tokyo, will be halted at the end of the 2027 fiscal year, in March 2028, the Japanese automaker said on 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. "This transfer is expected to significantly reduce manufacturing costs in Japan, strengthen plant competitiveness, improve product profitability, and support Nissan's long-term growth," said the statement, adding that the related costs are going to be disclosed during the upcoming first quarter financial announcement at the end of July. The plant's closure was expected, as the carmaker 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 workforce, or about 20,000 employees, which would include a 9,000 headcount reduction announced late last year, with some 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 (€3.9bn) for the fiscal year through March, down from a ¥426.6bn (€2.5bn) 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.
15-07-2025
- Automotive
Nissan to close its Oppama plant in Japan to cut costs
TOKYO -- 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.
Asahi Shimbun
07-07-2025
- Automotive
- Asahi Shimbun
Nissan mulling tie-up with Taiwanese firm to build EVs
Nissan Motor Corp., currently undergoing corporate restructuring, is considering plugging into major Taiwanese contract manufacturer Hon Hai Precision Industry Co.'s offer to produce electric vehicles, sources said on July 6. The collaboration includes producing Hon Hai's EVs at Nissan's Oppama plant in Yokosuka, Kanagawa Prefecture. This plant is believed to have been targeted for closure as part of Nissan's restructuring efforts. If an agreement is realized, Nissan could keep the Oppama plant operating and help maintain employment. Hon Hai is a global leader in contract manufacturing for electronic devices such as Apple's iPhone and gaming consoles. Recently, the company has actively expanded into the EV business and has announced its entry into the Japanese market. Unlike traditional automakers, Hon Hai designs and manufactures its standard EV models and supplies them under other company's brands. For Nissan, producing Hon Hai's EVs could boost the low utilization rate of the Oppama plant and enable the company to continue operating the facility. The Oppama plant began operations in 1961. Its annual production capacity is 240,000 units and employs about 3,900 workers as of late October 2024. It was once one of Nissan's main factories but now only produces the automaker's Note and Note Aura compact vehicles. In the fiscal year ending March 2025, Nissan announced a net loss of 670.8 billion yen ($4.6 billion), the third worst in company history. On the same day, Nissan also announced plans to lay off 20,000 employees worldwide and close seven factories. According to sources, Nissan has been considering closing the Oppama plant in particular, which has low operational rates, as well as its subsidiary Nissan Shatai Co.'s Shonan Plant in Hiratsuka, Kanagawa Prefecture.
Mint
28-05-2025
- Automotive
- Mint
Nissan's global layoffs to skip India as it lines up new SUVs
Nissan Motor Corp.'s 15% global layoffs to shore up its fortunes after a failed merger with Japanese peer Honda Motor Corp. will not impact its business in India, where the carmaker aims to scale up sales by more than fourfold over the next two years. 'There will not be any disruption to our teams here or our product plans in the country,' Nissan India managing director Saurabh Vatsa said on Wednesday said in a virtual press meet. 'We are on track to introduce new products and scale up growth in the market.' The maker of Magnite, a five-seater sport utility vehicle (SUV), plans to introduce three new car models in the next two years and increase its sales outlets from 159 to 180 in the ongoing financial year. Optimism about the world's third-largest automobile market contrasts with Nissan's global chief executive Ivan Espinosa's job and cost cuts to protect profits. Espinosa announced on 13 May that the company will shutter seven factories globally and cut 11,000 jobs in areas like manufacturing, sales, administration, research and contract staff. Nissan's operating profit for the financial year ended 31 March plunged by 88% to $472 million because of a slowdown in key markets like the US and China. The company also refrained from offering growth guidance due to uncertainty over US tariffs. Its merger talks with Honda Motor also collapsed in February this year because the two sides could not agree on the terms. The Indian business management stays upbeat amid this turbulence. The Japanese company plans to invest 700 million euros in the market by 2026 to fund expansion. Vatsa said a new multi-utility vehicle will be launched in the first three months of 2026 in India, followed by a five-seater SUV by the middle of the year. Nissan only makes the Magnite in the country and imports the X-Trail SUV as completely built units (CBUs). 'We are also exploring what more models can be brought in as CBUs in the country,' Vatsa said during the call. In 2027, the company aims to launch a seven-seater SUV as it has set domestic sales and export targets of 100,000 units each for the fiscal ending March 2027. Nissan sold 24,904 cars in the fiscal ended March, down 9% over a year earlier amid a slowdown in the broader car industry, which saw growth in sales fall to 2% to 4.3 million. The Japanese company plans to invest 700 million euros in the Indian market by 2026 to fund the expansion. The company announced in March that Renault will buy Nissan's entire stake in Renault Nissan Automotive India Pvt. Ltd, the joint manufacturing unit they set up in 2010. 'Our plans for new SUVs in the Indian market remain intact, and we will continue our vehicle exports to other markets under the 'One Car, One World' business strategy for India,' Expinosa said at the time of the announcement. The company sees the current capacity of 480,000 vehicles per year shared with Renault as enough to cater to its existing sales targets.
