TOKYO: Nissan Motor Co. on Monday told employees at its signature Oppama plant, near Tokyo, that reports of its planned closure were not definitive, according to some workers at the factory, Kyodo News Agency reported.
The struggling Japanese automaker was reported on Saturday to be considering shuttering the plant in Yokosuka and the Shonan plant of its unit, Nissan Shatai Co., in Hiratsuka, raising uncertainty over the future employment and treatment of the workforce.
The country’s third-biggest automaker by volume said last week that it will shut seven vehicle plants and cut 20,000 jobs globally after logging a net loss of 670.90 billion yen (US$4.6 billion) for fiscal 2024.
Nissan pioneered electric vehicle production at the Oppama plant, which has an annual production capacity of around 240,000 vehicles and employed 3,900 people, including researchers, as of the end of October last year. The Shonan plant builds commercial vehicles.
The prefectural government held an emergency meeting on Monday to discuss offering consultation and re-employment services in reaction to the potential closures.
“If they really do close, it will have a huge impact on employment and the economy,“ Kanagawa Governor Yuji Kuroiwa said at the meeting. “We will consider our options from a multitude of angles.”
Following the discussions, Kuroiwa told reporters that Nissan contacted the prefecture on Saturday after the initial reports. Nissan officials visited the prefectural office on Monday to inform it that nothing has been decided.
The prefectural government conveyed to Nissan its hope that the automaker will endeavour to limit the consequences of its actions.
During a regular press conference on the same day, Yokosuka Mayor Katsuaki Kamiji emphasised the importance of the more than 60-year history of the Oppama plant and said he hoped it would be “restored to its former brilliance.”
Nissan officials also visited the city on Monday.
