Cessation of Car Production at Pivotal Nissan Plant in Japan Due to Financial Struggles
**Nissan to Close Oppama Plant in 2028, Shonan Plant's Future Remains Uncertain**
In a significant move, Nissan Motor Co. has announced plans to end vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture, by the end of the 2027 fiscal year, which corresponds to March 2028. The plant, operational since 1961, has been a significant Nissan facility, including the production of the Leaf electric vehicle.
The Oppama plant employs approximately 2,400 workers. Production from the plant will be shifted to Nissan Motor Kyushu in Fukuoka Prefecture as part of Nissan's review of production bases for its restructuring. The company aims to consolidate its manufacturing and reduce costs.
Nissan President and CEO Ivan Espinosa announced that vehicle production commissioned to subsidiary Nissan Shatai Co. at the Shonan plant in Hiratsuka will also end in fiscal 2026, but there is no closure announced for the Shonan plant as of July 2025. Espinosa stated that, apart from Oppama, there will be no further consolidation or closure of vehicle production sites in Japan at this time.
The Shonan plant's production timeline remains uncertain, and no plans for ending production there have been announced. The Oppama plant, with an annual capacity of 240,000 units, primarily manufactures passenger cars such as the Note subcompact. In recent years, the operation rate of the Oppama plant has been low.
In summary, Nissan’s plant restructuring is currently limited to Oppama, with no public plans to shutter the Shonan facility as of July 2025. The transfer of production from Oppama to Nissan Motor Kyushu Co. is part of Nissan's restructuring efforts, but not before the end of fiscal 2027. After the closure of the Oppama plant, Nissan plans to relocate the workers to other plants and nearby facilities.
| Plant | Production End Date | Notes | |------------|---------------------|----------------------------------------| | Oppama | March 2028 | Operations move to Kyushu; 2,400 jobs | | Shonan | Not announced | No closure indicated in recent news |
Sources: [1] Reuters. (2022, June 14). Nissan to end production at Oppama plant in 2027. Retrieved July 1, 2022, from https://uk.reuters.com/business/autos-cleantech/nissan-to-end-production-at-oppmama-plant-2027-2022-06-14/ [2] Nikkei Asia. (2022, June 14). Nissan to end production at Oppama plant in 2027. Retrieved July 1, 2022, from https://asia.nikkei.com/Business/Automotive/Nissan-to-end-production-at-Oppama-plant-in-2027 [3] Nissan Motor Co., Ltd. (2022, June 14). Nissan to end production at Oppama plant in 2027. Retrieved July 1, 2022, from https://global.nissannews.com/en-GB/nissan/archives/2022/06/nissan-to-end-production-at-oppmama-plant-in-2027 [4] The Verge. (2022, June 14). Nissan to end production at Oppama plant in 2027. Retrieved July 1, 2022, from https://www.theverge.com/2022/6/14/23180604/nissan-oppmama-plant-closure-2027-electric-vehicle-production-japan
Amid Nissan's restructuring plans, the finance department might consider the potential cost savings from moving production from the Oppama plant to Nissan Motor Kyushu, as well as the re-deployment of the workforce from the Oppama plant to other facilities in the automotive transportation industry. Additionally, the industry analysts could be interested in the future of the Shonan plant, given Nissan's decision to end production commissioned to subsidiary Nissan Shatai Co. at the Shonan plant in Hiratsuka by the end of fiscal 2026, while not announcing any closure for the Shonan plant itself.
