Nissan considers shutting down 2 plants in Japan amid restructuring
What's the story
Nissan is said to be mulling the shutdown of two of its car assembly plants in Japan, according to the Yomiuri newspaper.
If done, these would be Nissan's first domestic plant shutdowns since closing its Murayama factory in 2001.
The company is also considering shutting down two factories in Mexico as part of a restructuring effort.
Official statement
Nissan responds to plant closure reports
In light of the reports of possible plant closures, Nissan released a statement on its website.
The company clarified that recent speculations about the closure of certain plants were not based on any official information from them.
"At this time, we will not be providing further comments on this matter," Nissan said in its statement.
Plant details
Potential impact on Japanese and international operations
The Japanese factories that are said to be on the chopping block include the Oppama plant, where Nissan started production in 1961, and the Shonan plant of Nissan Shatai.
The latter is a joint venture with Nissan holding a 50% stake.
As per Yomiuri's unnamed sources, overseas operations could also be impacted with possible halts at plants in South Africa, India, and Argentina.
Workforce
Production capacity and workers at the plants
The Oppama plant has an annual capacity of approximately 240,000 vehicles and employs around 3,900 workers as of October 2024.
In 2010, it became Nissan's first facility to manufacture the Leaf, widely regarded as the world's first mass-market electric vehicle.
The Shonan plant, which produces commercial vans, has a yearly capacity of about 150,000 units and employs roughly 1,200 people, according to Yomiuri.
Information
Nissan's cost-cutting measures
Earlier this week, Japan's third-largest automaker announced major cost-cutting measures. The company plans to reduce its workforce by about 15% and cut down production plants from 17 to 10 globally. This move is part of Nissan's strategy to achieve a turnaround in its operations.
Production consolidation
Consolidation of production for Nissan Frontier and Navara
Separately, Nissan also announced plans to consolidate production of its Frontier and Navara pickups from Mexico and Argentina into one production hub centered around the Civac plant in Mexico.
In March, the company also revealed that its French alliance partner Renault, would be buying out Nissan's stake in their joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL).