Nissan Shuts Down Oppama Plant to Slash Costs

Closure of Oppama Nissan Plant and Its Workforce Impact

Overview

• Location: Oppama, Japan
• Employee Count: Approximately 2,400 workers
• Closure Date: March 2028
• Reallocation of Production: Vehicles will be manufactured at another Nissan facility in southwestern Japan

Implications for Employees

• Projects in place for retraining and relocation opportunities within the company
• Support services to aid workers in seamless transition to new employment settings

Future of Nissan Manufacturing

• Strategic realignment aims to optimize production capacity across existing plants
• Focus on technological advancements and enhanced supply chain resilience in the southwestern facility

Nissan to Shut Oppama Plant and Consolidate Production in Kyushu

Key Dates and Operations

• Oppama plant closure: scheduled for March 2028, the end of the 2027 fiscal year.
• All current and future models produced at Oppama will be transferred to Nissan Motor Kyushu in Fukuoka Prefecture.
• Oppama has historically been a flagship site, notably for launching the Leaf electric vehicle in 2010.

Strategic Rationale

• Cost reduction: The transfer aims to cut manufacturing expenses in Japan.
• Enhancing plant competitiveness and improving product profitability are primary objectives.
• These changes are part of a broader plan to strengthen Nissan’s long‑term growth potential.

Financial and Workforce Impacts

• For the fiscal year ending March 2028, Nissan reported a loss of ¥670.9 billion (≈€3.9 bn), a significant swing from the prior year’s ¥426.6 billion profit.
• The company has cut its global workforce by roughly 15%, reducing about 20,000 employees, including a 9,000‑person reduction announced last year.
• Plant count in Japan will be trimmed from 17 to 10, with capacity decreasing from 3.5 million to 2.5 million units.

Leadership Transition

Ivan Espinosa stepped into the CEO role in April, succeeding Makoto Uchida, who resigned to take responsibility for the company’s financial performance.

External Influences

• Tariff policies under former U.S. President Donald Trump have negatively affected Nissan’s bottom line.
• Declining vehicle sales in China and other markets further compound the company’s restructuring challenges.

What Comes Next

Nissan will disclose detailed cost implications during the upcoming first‑quarter financial announcement scheduled for late July.