Nissan to 'rightsize' 3 manufacturing facilities

MANILA: As part of its global measures to streamline its cost structure, Nissan has revealed its plan to "rightsize" its Thailand manufacturing facility plant and two other global manufacturing plants in the first quarter of 2025.

This comes after the talks between Nissan and Honda for a possible merger has officially ended. 

Part of the rightsizing plan will involve adjustments to shift patterns, transfer of plant job assignments, and other measures. Through the said business decision, the carmaker hopes to save around ¥100 billion (P37 billion).

As mentioned above, one of the marque’s plants in Thailand is included in the planned downsizing measures.

For those unaware, the brand’s local arm sources several of its popular nameplates from the Land of Smiles. Locally available Nissan models made in Thailand are the following:

• Navara
• Terra
• Almera
• Kicks e-POWER

Meanwhile,  NPI explained in a separate statement that the rightsizing plan would turn Nissan Thailand’s Plant #1 into body and press shops, and all vehicle assembly operations would instead be moved to Plant #2.  

Below is Nissan Philippines' statement:

“As a part of Nissan’s global turnaround measures and ongoing business transformation in ASEAN and Thailand, Nissan is consolidating part of vehicle production in Thailand’s Plant #1 to Plant #2 and upgrading the lines starting from Q1 fiscal year 2025.

Plant line #1 will be closed for vehicle assembly, and the facility will be used for body and press shops and logistics operations. Thailand will remain a key market for Nissan in Southeast Asia, and the company continue its commitment to grow its business and brand in ASEAN and Thailand markets.” 

Regardless, Nissan has also shared that the production line consolidation plan in its Thailand and US-based vehicle and powertrain facilities will affect a total of 6,500 workers. Additionally, it will reduce the brand’s global production capacity by 20 percent, or approximately 5 million to 4 million units by 2026. 

The brand, however, remains optimistic when it comes to its future revenue growth. The same report specifically cited its confidence in e-POWER models, the all-electric Leaf, as well as an unnamed, yet-to-be-released compact electric vehicle. 

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