Nissan Weighs Global Plant Closures, Including Japan and Mexico, in Sweeping Cost-Cutting Plan
TOKYO — Nissan Motor Co. is reportedly considering shuttering multiple vehicle assembly plants in Japan and overseas as part of a sweeping cost-cutting overhaul aimed at revitalizing the automaker after steep losses in the 2024 financial year.
According to sources cited by Reuters on Saturday, the company is contemplating the closure of its historic Oppama plant, operational since 1961, and the Shonan plant run by affiliate Nissan Shatai, in which Nissan holds a 50% stake. If carried out, the move would leave Nissan with only three vehicle assembly plants in Japan.
The overhaul could also extend globally, with potential shutdowns under consideration at factories in Mexico, South Africa, India, and Argentina. The Yomiuri newspaper, which first broke the news, reported that two of Nissan’s manufacturing plants in Mexico are currently under review.
Despite these reports, Nissan issued a statement labeling the news as speculative and not reflective of any official decisions.
Earlier in the week, Japan’s third-largest automaker announced a broad restructuring plan that includes cutting approximately 15% of its global workforce and reducing the number of production facilities worldwide from 17 to 10.
As part of these efforts, Thai business outlet Krungthep Turakij reported that Nissan also plans to consolidate operations at two of its factories in Thailand to streamline production and reduce costs.
Nissan’s restructuring comes in response to significant financial setbacks and is part of a broader strategy to restore profitability and efficiency amid a rapidly changing global automotive market.
