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Auto Blog
5 days ago
- Automotive
- Auto Blog
Nissan Plans to Shutter Historic Japanese Factory in Cost-Cutting Move
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. View post: Walmart is selling a 'lightweight' $75 mini chainsaw for just $33, and shoppers say it's a 'little powerhouse' Nissan is saying sayonara to a storied facility In a stunning move, Japanese automaker Nissan announced that it plans to cease production at its storied Oppama plant and transfer its operations to reduce its costs and production capacity as part of its dramatic restructuring plans. The plant outside Tokyo has operated since 1961 as Nissan's central facility in Japan and employs about 2,400 employees. However, in a statement dated July 15, the Japanese carmaker said it will cease production by March 2028, a massive move that could leave a noticeable scar on the local economy. 0:07 / 0:09 2025 Nissan Z undercuts Toyota Supra by a surprising amount Watch More This drastic move comes as the automaker implements its Re:Nissan restructuring endeavors. Not long after taking the helm as CEO, Espinosa announced plans to cut 20,000 jobs and consolidate the company's manufacturing from 17 factories to 10. By doing so, Nissan will likely reduce annual production to 2.5 million units from 3.5 million. Nissan Oppama Plant — Source: Nissan Closing Oppama was a hard decision, CEO Espinosa said According to Nissan, at the end of the fiscal year 2027, all production at the Oppama Plant will be transferred to Nissan Motor Kyushu Co., Ltd in Fukuoka Prefecture, western Japan. In its statement, Nissan defended the move by stating that after a thorough assessment, it concluded the move from the Oppama Plant to Nissan Motor Kyushu 'is the most effective solution based on production capacity, cost efficiency, and investment potential,' adding that the transfer will lower its manufacturing costs in Japan, strengthen the competitiveness of its plants, improve the profitability of Nissan products and support the automaker's long-term growth. However, the raw numbers will be revealed during its fiscal Q1 results. Nissan CEO Ivan Espinosa — Source: Nissan However, in prepared remarks included in Nissan's statement, CEO Ivan Espinosa showed some sympathy for the workers who will be affected when the plant completely shutters. 'Today, Nissan made a tough but necessary decision. 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,' he said. 'The Oppama Plant is a proud part of our history, and its legacy will endure. I want to sincerely thank our employees, the local community, and our partners who have supported this plant with dedication and heart. We will continue to operate in the Oppama area with strong support for the local community, as we carry forward the spirit of the Oppama plant and work to restore Nissan's true value.' Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Nissan also added that production at other plants in Japan will not be consolidated and that it will 'explore a wide range of options to determine the most appropriate path forward' for its employees after production ends. Further, it said it will establish and communicate policies to affected employees and begin discussions with their union once decisions are finalized. Nissan Oppama Plant — Source: Nissan Nissan is losing an important, historic facility Nissan's announcement regarding Oppama is a blow to both the company and the region. Opened in 1961 with the production of the Datsun Bluebird, the Oppama plant holds some historical weight for the Yokohama-based automaker. In 2010, it became the first Nissan plant to mass-produce electric vehicles, as Leaf production started at the plant. According to the automaker, it has an annual production capacity of around 240,000 cars and employs 3,900 people in manufacturing and research roles. As a direct result, the shutdown of the Oppama plant could devastate Nissan and the area. The plant is also a popular tourist attraction, and many of Nissan's important parts suppliers are located near the plant. Within its 170 hectares, Oppama is also home to Nissan's research center, testing facilities, and a wharf for car carriers. In its announcement, Nissan said that the Nissan Research Center, GRANDRIVE, the crash test facility, and Oppama Wharf are unaffected and will continue operations. 1962 Datsun Bluebird 1200 Deluxe 'Flower Car' — Source: John Beltz Snyder Nonetheless, Kanagawa prefectural government officials emphasized during a May 19 meeting that the effects will have a sizable impact on the region. Kanagawa Gov. Yuji Kuroiwa noted that if Nissan does close, 'it will have a huge impact on employment and the economy.' Final thoughts The news comes a little more than a week after Reuters and Nikkei reported that Foxconn, the contract electronics manufacturer of items like iPhones and Nintendo Switches, was said to be talking with Nissan to build EVs at Oppama. However, as I mentioned previously, Nissan must overcome more than low sales and a bloated production capacity to save itself; it still has to play ball in its largest market, the United States. Last week, President Trump announced that he planned to impose 25% tariffs on all Japanese exports if a deal isn't made by August 1. Manufacturers like Nissan and its contemporaries, Honda and Toyota, face a 25% tariff on imported cars, regardless of country of origin. In remarks to ABC News, Hideo Kumano, the Japanese chief economist at Dai-ichi Life Research Institute, warned that if U.S. tariffs are imposed on Japanese goods, Japan will likely experience a recession. 'It's inevitable to see some kind of damage,' Kumano told ABC News. 'There is a possibility that we will fall into recession.' About the Author James Ochoa View Profile
NHK
5 days ago
- Automotive
- NHK
Nissan to cease auto production at mainstay plant in Japan
Japanese automobile manufacture Nissan Motor has announced that it will cease vehicle production at its mainstay Oppama plant near Tokyo as part of its restructuring efforts. 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.
Bloomberg
5 days ago
- Automotive
- Bloomberg
Nissan Says It Will End Production at Oppama Plant in Japan
Nissan Motor Co. said it will end production at its Oppama plant south of Tokyo and transfer assembly of vehicles to a factory in Kyushu. The Oppama plant, one of the oldest operated by the Japanese carmaker, will cease production at the end of fiscal 2027, the company said in a statement Tuesday.
CNA
07-07-2025
- Automotive
- CNA
Nissan considers Foxconn EV output to save Oppama plant from closure, sources say
TOKYO :Japan's Nissan Motor is in talks to allow Taiwan's Foxconn to use one of the automaker's domestic factories to build electric vehicles, said two people familiar with the matter, a deal that could save the plant from closure. Reuters reported in May that Nissan was considering closing its Oppama plant, in the port city of Yokosuka south of Tokyo. CEO Ivan Espinosa has announced sweeping restructuring plans aimed at turning around the struggling automaker, including closing seven of Nissan's 17 factories globally and reducing its workforce by some 15 per cent. Allowing electronics manufacturer Foxconn to produce its own EVs at Oppama could avert plant closure, mitigating the impact of restructuring on the plant's 3,900 employees and suppliers, the people said, declining to be identified. The discussions were first reported by the Nikkei business daily late on Sunday. Nissan in a statement said the Nikkei report was not based on information released by the automaker. A Foxconn spokesperson did not respond to a Reuters' request for comment. Kyodo News reported separately on Monday that Foxconn was considering a plan to acquire a portion of the Oppama plant. In May, Nissan's junior partner Mitsubishi Motors signed a memorandum of understanding with a Foxconn subsidiary for the Taiwanese firm to supply it with an EV model.
Yahoo
06-07-2025
- Automotive
- Yahoo
Nissan considers Foxconn EV output to save Oppama from closure, Nikkei says
TOKYO (Reuters) -Nissan Motor is in discussions with Taiwan's Foxconn about a collaboration in electric vehicles that could save its Oppama plant in Japan from closure, the Nikkei business daily reported on Sunday, citing an unidentified Nissan source. Nissan's Oppama plant, which employs about 3,900 workers, has been a potential consolidation target in the struggling Japanese carmaker's restructuring plans, but the floated idea of producing Foxconn-brand EVs at its idle assembly lines could preserve the jobs and supplier networks, Nikkei said. Sign in to access your portfolio
