Nissan Mulls Global Plant Closures Amid Major Cost-Cutting Push

Nissan is reportedly considering shutting down multiple car assembly plants in Japan and overseas as part of a sweeping cost-reduction plan. Sources say the Japanese automaker may close the Oppama and Shonan plants, which would leave Nissan with only three operational vehicle assembly sites in Japan: Tochigi, Nissan Motor Kyushu, and Nissan Shatai Kyushu.

Internationally, Nissan is also evaluating the closure of plants in South Africa, India, and Argentina, while planning to downsize its manufacturing footprint in Mexico. Two Mexican factories are under review, according to Japanese newspaper Yomiuri.

This restructuring aligns with Nissan’s recently announced global overhaul, which includes slashing its workforce by 15% and reducing production sites from 17 to 10. The strategy marks a significant shift under new CEO Ivan Espinosa, who is moving away from the global expansion model favored by his predecessor, Makoto Uchida.

Nissan clarified in a statement that reports of plant closures are speculative and not officially confirmed, emphasizing the company’s commitment to stakeholder transparency and future updates.

The company’s fiscal 2024 global sales dropped to 3.3 million vehicles, down 42% from 2017. Nissan previously confirmed that production of its Frontier and Navara pickups would be consolidated at the Civac plant in Mexico. It also announced in March that alliance partner Renault would acquire its stake in their joint Indian venture, Renault Nissan Automotive India Pvt. Ltd.

The potential shutdown of the Oppama plant, known for launching the Leaf EV in 2010, and the Shonan plant, which makes commercial vans, would be the first domestic closures since 2001. Oppama has a capacity of 240,000 vehicles and 3,900 employees, while Shonan can produce 150,000 units and employs 1,200 workers.