Recently appointed Nissan CEO Ivan Espinosa has announced two of Nissan’s domestic plants will close in the coming years, though it’s unlikely to affect Australian imports of the brand’s products.
The two factories will be the Oppama plant as well as the Shonan production facility.
Currently, Oppama serves as the home of production for the Japanese market Note and Note Aura, with production to be wound up by March 2028 (the end of the 2027-28 Japanese financial year).
Oppama previously served as a production facility for the Pulsar, Primera, Juke, Leaf, Tiida and Cube, however it now exclusively makes Japanese market models.
The decision to close the Oppama factory won’t affect Nissan’s research centre, crash test facility and other operations in the area, however a large number of the plant’s circa-2400 staff are expected to be laid off.
Production of the Note and Note Aura – as well as other future Nissan models planned to be built at Oppama – will transfer to Nissan’s Kyushu plant.
Nissan’s other factory set to close is the Shonan plant where the small NV200 van/people-mover and the AD van/wagon. Unlike Oppama, Nissan is not the majority owner of the Shonan factory, with the carmaker saying the successor to the current NV200 will go ahead from 2027.
“Today, Nissan made a tough but necessary decision,” Espinosa said in a media statement.
“It wasn’t easy – for me or for the company – but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future. The Oppama Plant is a proud part of our history, and its legacy will endure.
“I want to sincerely thank our employees, the local community, and our partners who have supported this plant with dedication and heart. We will continue to operate in the Oppama area with strong support for the local community, as we carry forward the spirit of Oppama plant and work to restore Nissan’s true value.”
It’s not yet known if Nissan’s announcement ends any possibility of outside manufacturers using the Oppama plant under contract, as reported last week.
Nikkei reported Oppama could be used by the EV subsidiary of Foxconn – one of the handful of companies which produces the Apple iPhone – to keep it afloat, as a part of a wider deal between Nissan and the Taiwanese firm.
The two brands have been linked for some time now, with Foxtron’s chief executive being a former Nissan employee, Jun Skei, while the Taiwanese company declared its interest to partner with Nissan following the latter’s breakdown in merger talks with Honda.
Following that announcement, Nissan announced a net loss of ¥670.9 billion (A$7.1 billion) throughout the 2024 Japanese financial year (April 2024 to March 2025), a staggering loss of ¥1.097 trillion (A$11.5 billion) compared to the financial year prior.
Previous reports have also suggested Nissan could sell its headquarters in Yokohama, said to be worth approximately ¥100 billion ($1.08 billion).
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