Production Shifts to Kyushu Amid Major Cost-Cutting Plan
Nissan Motor Corp. announced it will shut down its iconic Oppama plant in Kanagawa Prefecture by the end of the 2027 fiscal year, with all production shifting to the Nissan Motor Kyushu facility in Fukuoka. The move is part of a broader restructuring strategy aimed at boosting profitability and creating a more efficient global manufacturing footprint.
The Oppama facility, located south of Tokyo, has played a central role in Nissan’s history, notably launching the Leaf electric vehicle in 2010. However, as the automaker faces mounting losses, CEO Ivan Espinosa confirmed on Tuesday that the company had made the difficult decision to consolidate operations. The transition will affect around 2,400 workers currently employed at the plant.
Employees Offered Transfers or Local Reassignments
Espinosa emphasized that Nissan will act responsibly with respect to its workforce, offering relocation opportunities to other factories or alternate work arrangements in coordination with labor unions. Speaking at a press conference in Yokohama, he acknowledged the emotional significance of closing a facility deeply tied to the company’s identity.
“The world is changing by the minute,” Espinosa said, pointing to the need for agility in an evolving automotive industry. While he confirmed that discussions are underway to possibly sell or repurpose the Oppama site, the closure decision remains final regardless of future land use outcomes.
Global Restructuring Strategy Takes Shape
The closure of the Oppama plant is part of a larger effort by Nissan to reduce its total number of production facilities worldwide from 17 to 10 and bring its annual production capacity down to 2.5 million units from 3.5 million. These moves are meant to cut overhead and bring the company’s operations in line with current demand.
Nissan has blamed recent losses on several factors, including declining sales in China, growing inventory backlogs, and high restructuring costs. It also pointed to tariff measures introduced by President Donald Trump as contributing to financial pressure. Earlier in the year, the company announced a global workforce reduction of about 20,000 employees, or 15% of its total staff.
Financial Losses Trigger Leadership Change
The decision to close the Oppama facility coincides with significant financial setbacks. Nissan reported a loss of 670.9 billion yen (approximately $4.5 billion) for the fiscal year ending in March, a steep decline from the 426.6 billion yen profit it posted the year prior. This downturn led to the resignation of former CEO Makoto Uchida, with Espinosa stepping in to lead the company’s turnaround.
As part of the transition, all models previously manufactured or slated for production at Oppama will be moved to the Kyushu plant, which will now become a central hub for Nissan’s domestic manufacturing. The company hopes the move will help create a leaner, more resilient operation better suited to weather economic headwinds and industry disruption.
