Nissan to Shutter Oppama Plant in Japan for Cost Cuts

Nissan intends to close its Oppama factory in Japan by March 2028. This factory has been running for over 60 years. It helped shape Nissan’s identity and built millions of cars, including the famous Leaf and Note models.

Now, the company is making big changes. It wants to lower costs and simplify its operations. Closing Oppama is part of that plan. The move may seem bold, but it’s a sign of how fast the auto industry is changing.

We’re seeing carmakers shift toward electric vehicles and smarter production methods. For Nissan, that means fewer factories, less complexity, and a sharper focus on the future.

We’ll study why this decision was made, what it means for Nissan’s global plans, and how it will affect workers and the company’s future. Let’s explore the current situation and see what’s ahead.

Nissan will close its Oppama plant by the end of March 2028

Nissan has announced plans to shut down its Oppama plant in Yokosuka, Japan, by the close of fiscal year 2027, ending in March 2028. This plant began operations in 1961. It built nearly 18 million vehicles over six decades. It was also where Nissan launched the Leaf EV in 2010.

History and Significance of the Oppama Plant

This site is often called Nissan’s “mother factory.” It first used welding robots in 1970. The Oppama plant manufactured more than 17.8 million vehicles, including models like the Leaf and Note. For many years, it was a key part of Nissan’s global output.

Announcement Details

CEO Ivan Espinosa described the plant’s shutdown as a difficult but essential decision. Production will be shifted to Nissan’s Kyushu plant in Fukuoka Prefecture. Other sites at Oppama, like the research center, crash-test lab, and proving ground, will stay open.

Restructuring Under the Mid-Term Plan

This step is part of Nissan’s larger “Re: Nissan” plan aimed at reviving its business. We’re talking about reducing annual output from 3.5 million to 2.5 million cars and cutting factory count from 17 to 10. The plan also includes eliminating about 20,000 jobs, roughly 15% of global staffing.

Financial and Market Drivers

Nissan posted a ¥670.9 billion (≈$4.5 billion) net loss in its latest fiscal year. Sales in key regions like China and the U.S. have fallen. High costs, excess inventory, and delayed EV rollouts have made the situation tougher.

Impact on Workforce and Community

Oppama employs around 2,400 workers, though some reports say up to 3,900. Nissan intends to provide employees with opportunities for internal transfers to the Kyushu plant or other available positions. The company has committed to cooperating with unions to ensure a smooth and fair transition. The closure is expected to impact nearby suppliers and the economy of Yokosuka.

Future of the Oppama Site

Nissan stated that it is considering multiple possibilities for how the site could be used in the future. Talks include a possible joint venture or lease with Foxconn. But Espinosa said no formal deal has been finalized.

Industry Trends and Comparisons

The Oppama closure reflects a global trend. Carmakers are streamlining operations and moving toward electric vehicle production. Nissan’s decision is similar to steps taken by companies like Toyota and Honda. Partnerships with tech firms, such as Foxconn, are becoming more common.n 

Conclusion 

By shutting down the Oppama plant, Nissan is taking a bold step forward. The goal is to enhance operations in preparation for the electric vehicle era. We will watch how workers are reassigned, how Yokosuka adapts, and whether Foxconn or others become future partners. Nissan plans to release more financial details and costs tied to the shutdown in its first-quarter results.

FAQS:

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.