Nissan Motor Co. is considering closing multiple assembly plants in Japan and abroad, including long-standing domestic factories such as Oppama and Shonan, as part of a global restructuring effort, sources familiar with the matter said on Saturday.
The potential closures would reduce Nissan’s footprint to three vehicle assembly plants in Japan, a significant shift for the country’s third-largest automaker. Overseas, facilities in South Africa, India, and Argentina are also reportedly under review, along with plans to reduce the number of factories in Mexico, one of the sources said.
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The proposed moves follow Nissan’s announcement earlier this week of a plan to cut global production sites from 17 to 10 and reduce its workforce by 15%, part of a wider push to revive profitability amid declining global sales. Nissan sold 3.3 million vehicles in fiscal 2024, a sharp drop of 42% from 2017 levels.
Japan’s Yomiuri newspaper first reported the restructuring details. In a statement on Saturday, Nissan said media reports regarding specific plant closures were speculative and “not based on any official information.”
“At this time, we will not be providing further comments on this matter,” the company said. “We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary.”
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If confirmed, the closures would mark Nissan’s first domestic plant shutdowns since its Murayama factory closed in 2001. The Oppama plant, opened in 1961 and with capacity for 240,000 units annually, was home to the first Leaf EV production in 2010. The Shonan plant, operated by Nissan Shatai, produces vans and employs about 1,200 workers.
Sources indicated that keeping just three plants in Japan – Tochigi, Nissan Motor Kyushu, and Nissan Shatai Kyushu – would be sufficient to support both domestic demand and export operations.
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Nissan also confirmed earlier that it would consolidate production of the Frontier and Navara pickups into a single hub at its Civac plant in Mexico, while its Indian joint venture with Renault will transition to full Renault ownership, following a deal announced in March.
The more aggressive streamlining under new CEO Ivan Espinosa reflects a marked departure from former CEO Makoto Uchida’s strategy, which favored global expansion and resisted domestic plant closures.
Source: Reuters