Nissan to Halt Production at Oppama Plant by March 2028

Nissan Motor Co has announced plans to cease vehicle production at its Oppama plant in Yokosuka, Japan, by March 2028. This decision is part of a broader global restructuring initiative aimed at reducing production capacity from 3.5 million vehicles to 2.5 million and consolidating manufacturing sites from 17 to 10. The automaker’s efforts come in response to declining sales and increasing financial losses.

The Oppama facility, which opened in 1961, has been significant in Nissan’s history, representing one of Japan’s first large-scale automobile factories. The company plans to transfer operations to its factory located in the southern Fukuoka prefecture. This shift is part of the company’s initiative to streamline operations and enhance efficiency in the face of challenging market conditions.

Nissan indicated that it would explore a “wide range of options” regarding the future use of the Oppama plant. Reports from Reuters suggested that discussions were underway to allow Taiwan’s Foxconn to utilize the Oppama facility for electric vehicle production, potentially averting a complete closure of the plant.

In a statement released on Tuesday, Nissan emphasized that the costs associated with this transition will be detailed alongside its first-quarter financial results. The announcement is part of a comprehensive restructuring strategy led by CEO Ivan Espinosa, which aims to address the automaker’s ongoing challenges by reducing its global workforce by approximately 15 percent.

This strategic shift reflects Nissan’s commitment to adapting to the evolving automotive landscape, particularly in the electric vehicle sector, as the company seeks to regain its competitive edge in a rapidly changing market.