Nissan announced Tuesday it will cease production at its Oppama plant near Yokohama by the end of fiscal year 2027, marking another step in the automaker’s drastic cost-cutting measures.
The move comes as the company grapples with a staggering net loss of 671 billion yen ($4.5 billion) last year and plans to slash 15% of its global workforce.
The Oppama facility, one of Nissan’s six domestic plants, currently employs around 3,900 workers and has been operational since 1961. Known for pioneering mass-market electric vehicles like the Nissan LEAF, the plant’s production will now be relocated to an existing factory in Kyushu, southern Japan.
This decision is part of Nissan’s broader restructuring strategy, which includes reducing its global production plants from 17 to 10 by 2027. The financially strained automaker, burdened by debt and declining profitability, has faced mounting challenges, including failed merger talks with Honda earlier this year. The proposed deal collapsed after Honda reportedly pushed for Nissan to become a subsidiary—a condition Nissan rejected.
Nissan’s struggles are compounded by fierce competition from Chinese EV manufacturers and a model lineup that ratings agencies like Moody’s have deemed outdated, leading to a junk credit rating. The company has also shelved plans to build a $1 billion battery plant in Japan, citing a tough business environment.
Adding to its woes, Nissan is particularly vulnerable to U.S. tariffs on Japanese car imports, as its customer base is more price-sensitive than rivals like Toyota or Honda. Meanwhile, speculation persists that Taiwan’s Foxconn—the iPhone assembler expanding into automotive manufacturing—could acquire Renault’s stake in Nissan, potentially offering a lifeline.
The Oppama plant’s closure underscores Nissan’s uphill battle to regain stability after years of turbulence, including the dramatic 2018 arrest and escape of former chairman Carlos Ghosn. As the automaker races to streamline operations, industry watchers question whether its turnaround plan will be enough to revive its fortunes in an increasingly competitive market.
