Nissan plant to close, production to be transferred to another location.

KatadataOTO – Nissan's factory in Oppama, Japan, will be closed in March 2028. All production activities will then be transferred to Fukuoka as part of a global restructuring plan to reduce production capacity.

This step is being taken to restore the company's financial condition, which is currently in a downturn. They even plan to reduce production capacity from 3.5 million units per year to just 2.5 million and cut the number of their factories from 17 to only 10 worldwide.

Nissan is also reportedly in talks with Taiwan's Foxconn, which wants to use the Oppama factory to produce electric vehicles and prevent the plant's closure.

“Today, Nissan made a difficult but important decision. It is not easy for me or the company, but it is all for the sake of overcoming challenges and building a sustainable future,” said Ivan Espinosa, CEO of Nissan, as reported by Reuters (15/07).

Photo : Nissan

He also revealed that they will explore various options for the future use of the Oppama factory. The costs related to the production transfer will be disclosed in the near future.

For Nissan, the Oppama factory has a long history, having been opened since 1961. The facility is one of the large-scale car factories in Japan and has become a global symbol for the company.

At least 3,900 people work there and have produced at least 17.8 million vehicles.

Although production will be halted, other facilities such as the Nissan Research Center and the crash test site will reportedly not be affected by the restructuring.

It was previously reported that Nissan is indeed facing various challenges, especially in the financial sector. The company has taken various measures, including selling its Renault shares.

Photo : KatadataOTO

Not only that, the company also plans to sell several important assets, including its main office located in Yokohama, Japan. The property is estimated to be worth 100 billion yen.

The company is also reported to have taken several other strategic steps, including laying off around 20,000 workers worldwide. This number is equivalent to 15 percent of their total global workforce.