As Nissan faces financial perils, it has closed the first of seven production plants as part of the company’s recovery plan.
Nissan is facing its largest financial crisis in 25 years, and through its recovery plan, “Re:Nissan”, the Japanese car maker is starting to slash its production sites, beginning with the Oppama plant, just south of Tokyo – the site used to build the first Nissan Leaf.
Re:Nissan plans to cut or “consolidate” its production sites from 17 to 10 – meaning seven plants worth of employees will be axed – and plans to reduce global production capacity from 3.5 million units (except China) to 2.5 million units.
This is not the first we’re hearing of job cutting within the company after entering “emergency mode” – late last year it announced 9000 job cuts, and earlier this year a further 11,000 cuts.
Those working at the Oppama plant will be employed until the end of the 2027 Japanese fiscal year (March 2028) and Nissan has yet to establish any policies or plans regarding their employment future.
Recently appointed Nissan CEO Ivan Espinosa said in a media statement: “Nissan made a tough but necessary decision. It wasn’t easy – for me or for the company – but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future.”
“The Oppama Plant is a proud part of our history, and its legacy will endure. I want to sincerely thank our employees, the local community, and our partners who have supported this plant with dedication and heart,” Espinosa said.
“We will continue to operate in the Oppama area with strong support for the local community, as we carry forward the spirit of Oppama plant and work to restore Nissan’s true value."
As for the physical plant after its closure, Nissan is contemplating how to use the space.
Following the Oppama plant production shut down, it will schedule current and future production of models at Nissan Motor Kyushu in Fukuoka, towards the southern tip of the country.
Nissan has marked this consolidation to be the cost-effective solution for the company, anticipating cheaper manufacturing costs in Japan and improved profitability.
Ilana is a Melbourne-based journalist who was previously a copywriter in the Big Apple. Having moved to Melbourne for her Master of Journalism, she has written articles about food, farm machinery, fashion, and now the fast and furious. Her dream car has been a Mini Cooper since the fifth grade, eyeing its style and petite size.
