In a decision with heavy consequences, Nissan has announced the closure of its flaghip Oppama plant, operational since 1961, by March 2028. The historic site currently employs around 2,400 workers. Production will be transferred to a facility in Kyushu, as part of a vast cost-cutting and production capacity restructuring plan being implemented by the struggling automaker.
CEO Ivan Espinosa didn’t mince words: “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.”
A chapter of automotive history closes
The Oppama plant is famous for having produced the very first Nissan LEAF in 2010. After production of that electric sedan moved elsewhere, the site refocused on smaller models like the Nissan Note and Aura. Its closure will have a major impact on the Yokosuka region, where hundreds of subcontractors directly depend on its activity.
Local consequences and uncertain future for employees
No decision has yet been made regarding the reassignment of employees or the resale of certain assets. Nissan assures, however, that its other nearby facilities – including a research centre, test track, collision centre and maritime dock – will not be affected.
Ongoing global rationalization
This move is part of a broader strategy announced in May, which entails cutting 20,000 jobs, closing 7 out of Nissan’s 17 factories, and reducing annual production from 3.5 to 2.5 million vehicles. Nissan is also ending production of the NV200 van at the Nissan Shatai plant by March 2027.
A manufacturer seeking stability
Since the arrest of Carlos Ghosn in 2018 and the end of a strategic partnership with Honda earlier this year, Nissan has struggled to maintain its market position. The product range is ageing, margins are tightening and competition is intensifying, particularly in the EV segment.
The financial details of the just-announced closure will be specified during the quarterly results, expected on July 30.