Nissan Considers Shutting Plants in Japan and Abroad Amid Global Restructuring

Nissan is reportedly weighing the closure of multiple vehicle assembly plants in Japan and overseas, including facilities in Mexico, South Africa, India, and Argentina, as part of a sweeping cost-cutting initiative. Sources indicate that domestic operations under review include the historic Oppama plant, which began production in 1961, and the Shonan plant, operated by Nissan Shatai. If closed, Nissan would retain just three domestic factories: Tochigi, Nissan Motor Kyushu, and Nissan Shatai Kyushu.

The potential downsizing aligns with CEO Ivan Espinosa’s newly unveiled global turnaround strategy, which aims to streamline production and reduce the workforce by 15%. Nissan plans to cut its total number of plants worldwide from 17 to 10. This marks a significant shift from the strategy under former CEO Makoto Uchida, who resisted domestic plant closures.

Nissan’s global vehicle sales fell to 3.3 million in fiscal 2024, a sharp 42% drop from 2017. The company has already announced it will consolidate production of Frontier and Navara pickups in Mexico’s Civac plant, phasing out output in Argentina. Additionally, Renault is set to acquire Nissan’s stake in their joint India venture, Renault Nissan Automotive India Private Ltd, reinforcing the company’s exit from local production there.

While the company did not confirm any specific closures, it acknowledged that such reports are speculative and stated it will maintain transparency with stakeholders as decisions are finalized. The Oppama plant, once the launch site for the electric Nissan Leaf, has a capacity of 240,000 units and employs 3,900 people. The Shonan facility, producing commercial vans, handles 150,000 units annually with 1,200 workers.

These possible closures would mark Nissan’s first domestic plant shutdowns since 2001.