Nissan to cease operations in Oppama plant as part of ‘global production restructuring’

MANILA: Nissan Motor Corporation, Limited revealed that it will cease automotive production in its factory in Oppama, Kanagawa as part of its global production restructuring plan. 

According to the Japanese carmaker, it will transfer vehicle manufacturing operations from the aforementioned facility to Nissan Motor Kyushu Company, Limited in Fukuoka. 

The said plan applies solely to the Oppama plant in the Oppama district. 

On that note, other facilities and functions in the area — such as the Nissan Research Center, GRANDRIVE, the company’s crash test installation, and the Oppama Wharf — will remain unaffected and will continue operations as usual. 

The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027. 

“Today, Nissan made a tough but necessary decision. 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,” Nissan Chief Executive Officer Ivan Espinosa said in a press release. 

Per Nissan, the company looks to explore a wide range of operation options for its Oppama plant to determine the most appropriate path forward. 

As for the employees working in the said facility, Nissan noted that it will “establish clear policies, communicate them to affected employees, and initiate discussions with the union promptly once decisions are finalized.” 

Under the Re:Nissan plan, the Yokohama, Kanagawa-headquartered automaker aims to reduce its global production capacity from 3.5 million units (excluding China) to 2.5 million units, while maintaining a plant utilization rate of around 100 percent. 

To achieve this, the marque has been considering consolidation of its production sites from 17 to 10. 

In Japan, Nissan has concluded that transferring and consolidating vehicle production from its Oppama factory to Nissan Motor Kyushu is the most effective solution, based on production capacity, cost efficiency, and investment potential. 

Nissan stated that the said transfer “is expected to significantly reduce manufacturing costs in Japan, strengthen plant competitiveness, improve product profitability, and support Nissan’s long-term growth.” 

To recall, Nissan’s downsizing initiative has already seen the integration of its Thailand facility where the below locally-offered nameplates are made: 

• Almera 
• Kicks e-Power 
• Navara 
• Terra

The company is also expected to rightsize its United States-based plant. 

These decisions followed the lost merger between Nissan and Honda Motor Company, Limited and the brand’s move to sell its shares in Mitsubishi Motors sometime last year.

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