Background on Nissan and its Current Financial Situation
Nissan, a prominent Japanese automobile manufacturer, has been facing significant financial challenges. In 2024-2025, the company reported a colossal net annual loss of approximately 4.1 billion euros (around 4.7 million USD), primarily due to the costs associated with its recovery plan.
Nissan has been grappling with high debt, unprofitability, and a decline in sales across its key markets. In November, the company announced plans to cut its total production capacity by 20% as part of a restructuring effort.
Nissan’s Restructuring Plan
As part of its restructuring, Nissan aims to decrease the number of its vehicle production plants from 17 to 10 by the end of fiscal year 2027. This move will reduce its production capacity (excluding China) to 2.5 million vehicles per year.
Additionally, Nissan intends to eliminate around 20,000 jobs worldwide by the same deadline.
Oppama Plant Production Halt
Nissan announced on Tuesday that it will cease production at its Oppama plant, located south of Tokyo, by early 2028. This decision is part of a global restructuring effort to drastically reduce the company’s production capabilities.
The Oppama plant, which employs approximately 2,400 people and specializes in hybrid vehicle manufacturing, will cease production by the end of fiscal year 2027, which is March 2028.
Nissan plans to transfer and integrate the production of vehicles from Oppama to another plant near Fukuoka, located in southwestern Japan.
Impact on Employees and Future Plans
Nissan’s CEO, Ivan Espinosa, acknowledged the difficult yet necessary decision. He stated that this move is an essential step to overcome current challenges.
The company considers this the most efficient solution, taking into account capacities, profitability, and investment potential. Nissan assured that other activities, such as research and development or crash testing, will continue at Oppama.
Employees currently working at the Oppama plant will remain until the end of fiscal year 2027, with their future being subject to negotiations with labor unions.
Oppama Plant’s History and Production
Established in 1961, the Oppama plant has produced a total of approximately 17.8 million vehicles.
Key Questions and Answers
- What is the main reason for Nissan’s restructuring? Nissan’s financial struggles, including high debt, unprofitability, and declining sales in key markets, have led to the restructuring effort.
- How many production plants will Nissan reduce from? Nissan aims to decrease the number of its vehicle production plants from 17 to 10 by the end of fiscal year 2027.
- What will happen to the Oppama plant’s production? Production at Nissan’s Oppama plant will cease by the end of fiscal year 2027, with vehicle production being transferred to another plant near Fukuoka.
- How many jobs will Nissan eliminate worldwide? Nissan intends to cut around 20,000 jobs globally by the end of fiscal year 2027.
- What other activities will continue at the Oppama plant? Research and development, as well as crash testing, will continue at the Oppama plant following the production halt.
