TOKYO: Struggling automaker Nissan has confirmed it will cease production at its Oppama plant in Japan by the end of fiscal year 2027. The decision follows a net loss of 671 billion yen ($4.5 billion) last year and plans to reduce its global workforce by 15 percent.
“The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027,“ Nissan stated. Operations from the Yokohama-area facility will be relocated to an existing factory in Kyushu.
Established in 1961, Oppama is one of Nissan’s six domestic plants and currently employs around 3,900 workers. It played a key role in producing the Nissan LEAF, the world’s first mass-market electric vehicle.
The move is part of Nissan’s broader restructuring strategy, which includes reducing its global production plants from 17 to 10 by 2027. The automaker faces mounting challenges, including competition from Chinese EV brands and a failed merger with Honda earlier this year.
Nissan’s financial woes have been exacerbated by weak profitability and an aging model lineup, leading to junk status ratings from agencies like Moody’s. The company also shelved plans for a $1-billion battery plant in Japan due to a tough business environment.
Experts note Nissan’s vulnerability to U.S. tariffs on Japanese vehicles, given its price-sensitive customer base. Potential partnerships, such as with Foxconn, could offer a lifeline as the company seeks stability. - AFP
