Overview of Nissan’s Restructuring Plan
Nissan plans to close two factories in Japan and facilities in four other countries as part of its restructuring and cost-reduction process, according to the Japanese newspaper Yomiuri.
Specifically, the Japanese manufacturer intends to shut down operations at Oppama and Hiratsuka plants, operated by Nissan Shatai Co, which account for about 30% of domestic production. Both are located in Kanagawa, south of Tokyo, where Nissan’s central headquarters are situated.
Details of the Planned Closures
The Oppama plant focuses on producing Nissan’s electric vehicles, including the Leaf and Note, with an annual production capacity of 240,000 cars. The Hiratsuka factory manufactures commercial vehicles with a capacity of 150,000 units.
Globally, Nissan is considering closing two plants in Mexico and ending production in India, Argentina, and South Africa, as reported by Yomiuri.
Earlier this week, Nissan announced the closure of seven production plants worldwide by 2027, though it did not specify the locations. The company also plans to reduce its workforce by up to 20,000 positions by the same year.
The aim of these measures is to cut costs by €500 million following a fiscal year 2025 loss of ¥670.9 billion (€4.08 billion), one of the worst in its history.
In a statement, Nissan described reports about plant closures as “speculative” and not based on any official company information.
Global Crisis Facing Nissan
Nissan has faced a decline in global sales and profitability due to increasing competition from China’s rapidly growing electric vehicle sector and lower sales volumes in another major market, the United States.
Talks to merge Nissan with Honda failed earlier this month, leading to the dismissal of former CEO Makoto Uchida. Iván Espinosa, the new Nissan leader who took office in April, is implementing a restructuring plan to save the automaker without external partnership assistance.
“Given the challenging performance in fiscal year 2024 and rising variable costs amid uncertainty, we must prioritize profitability with greater urgency and speed, seeking less volume-dependent profitability,” said Nissan’s president and CEO, Iván Espinosa, during the company’s results presentation.
Uncertainty Regarding Impact in Spain
It remains unclear how this decision by Nissan’s management will affect Spain, but company sources have told Europa Press that they “have no confirmation” regarding whether Spanish plants will be impacted by this workforce and headquarters reduction for 2027.
Nissan operates a vehicle industrial manufacturing plant in Ávila and a vehicle manufacturing headquarters in Los Corrales de Buelna, Cantabria.
The company closed its vehicle production plant in Barcelona at the end of 2021, which included three facilities: a main one in Barcelona’s Zona Franca and two satellite centers in Montcada i Reixac and Sant Andreu de la Barca.
The closure resulted in the loss of approximately 3,000 direct jobs and affected up to 25,000 indirect jobs linked to the auxiliary industry and suppliers. The shutdown of these facilities marked the end of over 40 years of Nissan production in Catalonia.
Key Questions and Answers
- Q: Which Nissan plants are being closed? A: Nissan plans to close two factories in Japan (Oppama and Hiratsuka) and is considering closing plants in Mexico, India, Argentina, and South Africa.
- Q: Why is Nissan implementing these closures? A: The company aims to reduce costs by €500 million following significant losses in its fiscal year 2025.
- Q: How many jobs are affected by these closures? A: Nissan plans to reduce its workforce by up to 20,000 positions globally.
- Q: What challenges is Nissan facing? A: The automaker is dealing with declining sales and profitability due to increased competition from China’s electric vehicle sector and lower sales in the United States.
- Q: What is the status of Nissan’s merger talks with Honda? A: Talks to merge Nissan with Honda failed earlier this month, leading to the dismissal of former CEO Makoto Uchida.
- Q: What is the impact on Nissan’s Spanish operations? A: The effect of these closures on Nissan’s Spanish plants remains unclear, as there is no official confirmation.
