Nissan Motor Corporation has announced it will close its flagship Oppama manufacturing plant in Japan by the end of the 2027 fiscal year, marking a significant shift in the company’s strategy to reduce costs and streamline operations amid ongoing financial struggles.
The Oppama facility, located in Kanagawa Prefecture just south of Tokyo, has long been a cornerstone of Nissan’s global production network. The plant was notably responsible for launching the Nissan Leaf electric vehicle back in 2010, establishing the brand as an early leader in the EV sector. Now, after decades of operation, production at the site will cease in March 2028.
All manufacturing currently handled at Oppama will be transferred to Nissan’s facility in Kyushu, located in Fukuoka Prefecture in southwestern Japan. This consolidation is part of a broader strategy aimed at improving profitability by reducing global production capacity and closing underutilized or overlapping plants.
The move comes as Nissan continues to grapple with mounting losses, driven by falling sales—particularly in the Chinese market—as well as the financial burden of large-scale restructuring and excess inventory. The company recently reported a net loss of 670.9 billion yen (approximately $4.5 billion) for the fiscal year ending in March, a sharp reversal from the 426.6 billion yen profit it posted just a year earlier.
Earlier this year, Nissan outlined its plan to downsize its manufacturing footprint from 17 plants to just 10 worldwide. At the same time, the company is aiming to cut its annual production capacity from 3.5 million vehicles to 2.5 million. This reduction will also include a global workforce cut of around 20,000 employees—about 15% of its total labor force—following previous job cuts that began late last year, including in China.
Trade policy pressures have compounded the challenges facing the automaker. Executives have pointed to recent tariff measures as a significant strain on Nissan’s bottom line, making it more difficult to maintain profit margins across international markets.
Leadership changes have also accompanied the restructuring efforts. Ivan Espinosa, who took over as CEO in April, has stepped into the role during a turbulent time. His predecessor, Makoto Uchida, resigned earlier this year to take responsibility for the company’s deteriorating financial performance. Espinosa is expected to present further details about Nissan’s restructuring plans and future direction in a press briefing.
The closure of the Oppama plant, while anticipated, signals the end of an era for Nissan. The facility has served not only as a production site but also as a symbol of the company’s engineering innovation and manufacturing excellence. Its closure reflects the difficult decisions being made across the automotive industry as global manufacturers face a rapidly evolving market landscape, technological disruption, and shifting geopolitical realities.
