Nissan to close main plant in Japan, reduce global production by 2027

Japanese automaker Nissan Motor announced Tuesday that it will halt vehicle production at its main plant in Oppama, near Tokyo, by the end of fiscal 2027, as part of a comprehensive restructuring and capacity reduction plan.

Kyodo News Agency quoted the company as saying that Nissan aims to reduce its global production capacity excluding China from 3.5 million to 2.5 million units annually, in addition to laying off 20,000 jobs worldwide.

The struggling company explained that it will move production operations from its plant in Kanagawa Prefecture to the facilities of its subsidiary Nissan Motor Kyushu Co., located in southwestern Japan.

This decision comes after Nissan reported a net loss of 670.90 billion yen ($4.5 billion) for fiscal 2024, due to declining sales in the United States and China. As part of its restructuring plan, Nissan aims to reduce the number of its production sites from 17 to 10, both inside and outside Japan, by fiscal year 2027. Nissan CEO Ivan Espinosa said in a statement, “We have made a difficult but necessary decision. I believe it represents a vital step toward overcoming current challenges and building a sustainable future for the company.”