Nissan to Shut Legacy Plant in Cost-Cutting Move

Nissan will shut down its Oppama plant in Yokosuka, Kanagawa Prefecture by the end of fiscal year 2027 as part of a broader cost-cutting and consolidation strategy. All production will be transferred to its Kyushu facility in Fukuoka Prefecture. The move affects 2,400 employees and marks the end of operations at a site long central to Nissan’s manufacturing legacy.

“This was an extremely difficult decision,” said CEO Ivan Espinosa during a press conference at Nissan’s Yokohama headquarters. “The Oppama plant is an icon for Nissan, but I believe it is a vital step toward overcoming our current challenges and building a sustainable future.”

Espinosa, who took the reins in April 2025, emphasized that Nissan is working with labor unions to support affected workers through internal transfers or alternate job opportunities in the region. Production at Oppama will continue through March 2028, with the company considering future uses for the site, including a potential sale.

The closure is part of Nissan’s January 2025 strategy to reduce its global plant count from 17 to 10 and scale back annual production capacity from 3.5 million to 2.5 million vehicles. The automaker also plans to cut around 20,000 jobs worldwide—roughly 15% of its workforce—including previously announced reductions, mainly in China.

The plant’s closure aligns with Nissan’s earlier announcement to reduce its global manufacturing footprint. In January 2025, the automaker disclosed plans to cut its number of plants from 17 to 10 and reduce production capacity from 3.5 million to 2.5 million units annually. The company also announced earlier this year it would reduce its global workforce by approximately 15%, or around 20,000 jobs. This includes previously disclosed reductions of 9,000 positions, mainly in China.

The decision follows a difficult fiscal year: Nissan posted a net loss of ¥670.9 billion (about US$4.5 billion) for the year ending March 2025, reversing a ¥426.6 billion profit from the previous year. Weak sales in China, mounting restructuring expenses, and inventory challenges contributed to the downturn.

The company is also navigating fallout from the collapse of its partnership with Honda and long-standing leadership instability dating back to the arrest of former chairman Carlos Ghosn in 2018—issues that have impacted its competitiveness in the EV market.

Nissan confirmed that this will be its final domestic production cut. Facilities such as the Nissan Research Center, GRANDRIVE proving ground, crash test site, and Oppama Wharf will remain fully operational. Since opening in 1961, the Oppama plant has produced over 17.8 million vehicles and played a key role in Nissan’s global manufacturing legacy. The company pledged to uphold quality standards at the site until operations conclude.