Nissan Motor announced on July 15 that it will end production at its Oppama plant in Yokosuka, Kanagawa Prefecture, one of its main factories in Japan, before March 2028.
On the same day, the Nikkei and other outlets reported that Nissan plans to transfer and integrate the production functions of the Oppama plant into its subsidiary, Nissan Motor Kyushu, in the future.
The future use of the Oppama plant after production ends will be decided at a later date. As of the end of October last year, the Oppama plant had approximately 3,900 employees, who are expected to continue working at the facility until the end of 2027.
Nissan stated, "We have concluded that transferring and integrating the plant is the most efficient option in terms of production capacity and competitiveness."
Nissan President Ivan Espinosa said, "Nissan made a major decision today," adding, "It was not an easy decision, but I believe it is an important step to overcome current challenges and build a sustainable future."
The Oppama plant, which began operations in 1961, is one of Nissan's main factories. It currently produces the Note. While the plant has an annual production capacity of 240,000 units, last year its operating rate was about 40%, which is half the 80% considered the break-even point.
Nissan is also reportedly in discussions with Taiwan's Foxconn (Hon Hai Precision Industry) regarding the use of the Oppama plant.
For the 2024 fiscal year (April 2024 to March 2025), Nissan recorded a loss of 670.8 billion yen (approximately 6.2701 trillion won). In May, the company announced plans to reduce the number of its global factories from 17 to 10 and to cut 20,000 employees, which is 15% of its total workforce, by March 2028, as part of efforts to secure funding and reduce costs.
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