Nissan to close factory

Nissan Motor Corporation has announced plans to cease vehicle production at its flagship factory in Oppama, Japan, as it seeks to cut costs and trim its manufacturing capacity.

Production from the site will be transferred to a plant in Kyushu as part of a global restructuring of the carmaker’s operations.

Nissan says the Oppama plant has been in operation since 1961 and employs about 2,400 workers but will cease production by March 2028.

Ivan Espinosa, chief executive officer, says closing the factory was a tough but necessary decision.

“It wasn’t easy – for me or for the company – but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future,” he explains.

Espinosa adds that no decisions have been made yet on the future of employees at the plant beyond March 2028.

In May, he announced plans to consolidate the company’s production sites from 17 to 10 and reduce Nissan’s global production capacity from 3.5 million units a year to 2.5 million. 

The Oppama plant made the first-generation Leaf, the world’s first mass-produced electric vehicle, in 2010. Its output later focused on smaller vehicles such as Nissan’s Note and Aura.

Nissan also announced on July 15 that it will end contract production of its NV200 van at Nissan Shatai’s factory in Shonan by March 2027.

Espinosa says there are no further plans for consolidation or cutting of vehicle production sites in Japan.