Nissan Is Thinking About Shutting Down Operations Overseas And In Japan

Nissan is considering plans to close two car plants in Japan and factories abroad, including one in Mexico, sources said Saturday, as part of a cost-cutting plan the company announced earlier this week.

The automaker is considering closing Japan’s Oppama plant, where Nissan began production in 1961, and the Nissan Shatai-operated Shonan plant, in which Nissan has a 50% stake, sources told Reuters, which would leave it with just three vehicle assembly plants in Japan.

Abroad, Nissan is considering halting production at plants in South Africa, India, and Argentina and reducing the number of factories in Mexico, one of the sources said.

Japan’s third-largest carmaker recently unveiled sweeping new cost-cutting measures, saying it will cut its workforce by about 15% and cut production facilities to 10 from 17 globally as it seeks to implement a turnaround.

The Yomiuri newspaper, which first reported on the possible closure of Nissan plants in Japan and abroad, said that two plants in Mexico were being considered.

Nissan said in a statement that reports of potential plant closures are speculative and not based on official company information.

“We will not be commenting further on this matter at this time,” Nissan said in a statement. “We are committed to maintaining transparency and will communicate any relevant updates as appropriate.”

The more aggressive turnaround steps unveiled by new CEO Ivan Espinosa mark a sharp break with Nissan’s strategy under his predecessor, Makoto Uchida, who had high hopes for expanding global production and refused to close domestic plants.

The automaker’s fiscal year 2024 sales totaled 3.3 million vehicles, down 42% from fiscal year 2017.

In a statement on Saturday, Nissan said it had previously announced it would consolidate production of the Nissan Frontier and Navara pickups from Mexico and Argentina into a single production headquarters centered around the Civac plant in Mexico.

It also noted that in March, it was announced that French alliance partner Renault would buy out its stake in their joint Indian business, Renault Nissan Automotive India Private Ltd. (RNAIPL).

The closure of the domestic plants would be the first for Nissan since the closure of the Murayama plant in 2001.

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