Latest news with #recoveryplan


Motor 1
15-07-2025
- 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 ( )


Top Gear
13-05-2025
- Automotive
- Top Gear
Crikey, Nissan's cutting 20,000 jobs, shutting seven factories and pausing new cars
Business The ailing Japanese carmaker has called all hands to deck Skip 1 photos in the image carousel and continue reading Nissan will cut 20,000 jobs, close seven factories and pause all post-2026 new car development as part of a radical new recovery plan. After posting a £3.4bn loss, new CEO Ivan Espinosa has instead directed 3,000 people to focus fully on 'cost reduction initiatives'. The target is to save 250 billion yen (£1.2bn) by 2026, compared to 2024 numbers. Advertisement - Page continues below That means slashing 20,000 jobs globally – including the previously announced cut of 9,000 – from manufacturing, SG&A, and R&D by 2027. It will also look to close seven factories – 17 down to 10 – in two years, along with 'streamlining' its powertrain plants, adjusting work shifts and reducing capital expenditure. That means cancelling the planned lithium-ion phosphate battery plant in Kyushu. You might like Further, Nissan will temporarily pause 'advanced and post-FY26 product initiatives' that'll free up those 3,000 people to work on saving money instead. It'll also look to reduce engineering costs, cut parts complexity by 70 per cent, cut the number of platforms it uses for its cars from 13 to seven by 2035, and shorten the development time down to 30 months. The first cars developed under this new regime include the new Skyline (not that one), a new 'global C SUV', and Infiniti's compact SUV. Advertisement - Page continues below The new strategy will apparently be 'centred around signature Nissan models that deliver strong nameplates which represent the heartbeat of Nissan globally'; models that crucially, sell in big numbers. Qashqai's probably safe, then. Espinosa said: "In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. 'As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. 'Re:Nissan is an action-based recovery plan that clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026." Thank you for subscribing to our newsletter. Look out for your regular round-up of news, reviews and offers in your inbox. Get all the latest news, reviews and exclusives, direct to your inbox.