Struggling auto big Nissan mentioned Tuesday it’ll cease manufacturing at its plant at Oppama in Japan on the finish of its 2027 fiscal 12 months.
Nissan posted a internet lack of 671 billion yen ($4.5 billion) final 12 months and it has mentioned it’ll lower 15% of its international workforce.
“The firm will stop car manufacturing on the Oppama plant on the finish of fiscal 12 months 2027,” Nissan mentioned in an announcement.
Production of the plant outdoors of Yokahama will probably be shifted to a different current manufacturing unit on the southern Japanese island of Kyushu, it mentioned.
One of Nissan’s six home crops, Oppama employed round 3,900 individuals as of October 2024 and started operations in 1961, based on the corporate’s web site.
It was a “pioneer within the manufacturing of superior automobiles, such because the Nissan LEAF, the world’s first mass-market electrical car,” it mentioned.
The closely indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this 12 months, is slashing manufacturing as a part of its costly enterprise turnaround plan.
Nissan mentioned in May it might “consolidate its car manufacturing crops from 17 to 10 by fiscal 12 months 2027”.
Like many friends, Nissan is discovering it tough to compete towards Chinese electrical car manufacturers.
The merger with Honda had been seen as a possible lifeline however talks collapsed in February when the latter proposed making Nissan a subsidiary.
Nissan has confronted quite a few velocity bumps lately—together with the 2018 arrest of former boss Carlos Ghosn, who later fled Japan hid in an audio tools field.
Ratings companies have downgraded the agency to junk, with Moody’s citing its “weak profitability” and “growing old model portfolio”.
This 12 months Nissan shelved plans, solely not too long ago agreed, to construct a $1-billion battery plant in southern Japan owing to the powerful “enterprise surroundings”.
Of Japan’s main automakers, Nissan is seen as essentially the most uncovered to US President Donald Trump’s 25% tariff imposed on imported Japanese automobiles earlier this 12 months.
This is as a result of its clientele has traditionally been extra price-sensitive than that of its rivals, based on consultants.
One potential answer for Nissan may very well be Taiwanese electronics behemoth Hon Hai, higher often known as Foxconn, which assembles iPhones and is increasing into automobiles.
Foxconn mentioned in February it was open to purchasing Renault’s stake in Nissan.
© 2025 AFP
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