Here’s Why Nissan Is Closing Its Flagship Plant, Cutting 22K Jobs
Nissan CEO reveals plans to close the automaker’s historic Oppama plant as part of a revitalization and cost-cutting strategy.
Operational since 1961, the plant produced many key models, including the Cedric, Bluebird, Violet, Stanza, Maxima, Cube, and Leaf.
Production will shift to Nissan Motor Kyushu Co. Ltd. in Fukuoka Prefecture.
The closure of a decades-old flagship factory is a rare occurrence in the automotive world, especially in Japan, whose auto industry effectively formed the basis of Japan’s post-war economy. But this is exactly what will happen in the near future as Nissan works to close its historic Oppama plant, which has been online since 1961, and transfer vehicle production to Nissan Motor Kyushu Co. Ltd. in Fukuoka Prefecture.
The Oppama plant southwest of Tokyo is perhaps the equivalent of Ford’s Dearborn, Michigan, plant and has produced many key, historic models, including the Cedric, Bluebird, Violet, Stanza, Leaf, Cube, Maxima, and others.
The automaker made the announcement as part of its “Re:Nissan” recovery strategy, led by the automaker’s new CEO Ivan Espinosa, that will close a total of seven plants.
“Today, Nissan made a tough but necessary decision,” Espinosa said. “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.”
22,000 Jobs on the Line
Nissan plans for production at Oppama to cease by the end of fiscal year 2027, but it will keep several nearby sites, including Nissan Research Center as well as the crash-test facility and the Oppama Wharf, operational.
The Re:Nissan strategy, announced earlier this year, seeks to significantly cut costs through fiscal year 2027, shuttering seven plants and cutting 22,000 jobs.
The automaker also plans to reduce the number of platforms it uses for its vehicles from 13 to seven over the next decade, while also cutting engineering costs and reducing parts complexity by 70 percent.
The turnaround strategy, helmed by the new CEO, effectively seeks to scale back some of the sprawl that Nissan had generated since 2000 under former CEO Carlos Ghosn (who became famous outside the auto industry by escaping house arrest in a musical-instrument box), and who prioritized the variety of lower-priced models while chasing sales volume.
The post-pandemic shakeup had accelerated several trends in the auto industry, with Nissan finding itself too slow to respond to emerging market realities.
Nissan Trying to Catch Up
“This transfer is expected to significantly reduce manufacturing costs in Japan, strengthen plant competitiveness, improve product profitability, and support Nissan’s long-term growth,” the automaker noted.
Nissan’s recent inability to conclude a merger with Honda is seen as having deepened the challenges facing Nissan, while accelerating the need for cost-cutting measures.
Still, Nissan has seen some notable recent successes, such as the redesigns of several major models and the launch of the third-generation Leaf to complement its growing EV lineup.