Nissan Motor Co Ltd has confirmed it will end vehicle production at its Oppama facility by the close of its 2027 fiscal year, in a strategic move to streamline operations under its global restructuring plan.
The Japanese automaker, which reported a net loss of ¥671 billion last year, stated the production activities currently carried out at the Oppama plant, located just outside Yokohama, will be transferred to an existing facility on the southern island of Kyushu. The announcement is part of a broader effort by Nissan to consolidate its manufacturing footprint, with plans to reduce the number of its vehicle production plants from 17 to 10 by fiscal year 2027.
Oppama, one of six domestic plants operated by Nissan, employed approximately 3,900 staff as of October last year. The site, which has been operational since 1961, played a pivotal role in the brand’s history and was notably the first to produce the Nissan LEAF—widely recognised as the world’s first mass-market electric vehicle.
The decision to halt production at Oppama reflects the company’s response to mounting financial pressure and increased competition, particularly from rapidly expanding Chinese electric vehicle manufacturers. Nissan’s business challenges have been compounded by the collapse of merger discussions with Honda Motor Co Ltd earlier this year. The proposed deal, which would have seen Nissan become a subsidiary of Honda, was abandoned in February.
Once viewed as a potential pillar of stability, the abandoned merger was part of Nissan’s wider turnaround strategy, which also included a significant reduction in its global workforce by 15 per cent.
The company has faced several reputational and operational setbacks in recent years. The 2018 arrest and subsequent escape of former chairman Carlos Ghosn continues to cast a long shadow, while credit ratings agencies have since downgraded Nissan’s status to “junk”. Moody’s, in particular, cited “weak profitability” and an “ageing model portfolio” as key concerns.
In a further blow, Nissan scrapped a recently approved US$1 billion battery plant project in southern Japan earlier this year, citing adverse business conditions. The firm is also considered among the most vulnerable Japanese automakers to the 25 per cent tariff on Japanese vehicle imports imposed by US President Donald Trump. Industry analysts note that Nissan’s customer base in the United States tends to be more price-sensitive than those of its competitors, amplifying the potential impact of such trade policies.
As Nissan continues to battle financial headwinds and shifting market dynamics, the closure of the Oppama plant marks a significant chapter in its transformation strategy, signalling both a nod to its storied past and a pragmatic step toward its future ambitions.
-AFP
