Nissan Motor Corporation will shutter its flagship Oppama manufacturing facility in Kanagawa Prefecture, Japan, by March 2028, sacrificing a historic site in a drastic bid to restore profitability, according to Euronews.
The decision directly threatens approximately 2,400 jobs at the plant south of Tokyo, marking a profound shift for an automaker battling severe financial turbulence. Production currently housed at Oppama will transfer entirely to the company’s Kyushu plant in Fukuoka Prefecture, southwestern Japan, by the conclusion of the 2027 fiscal year.
Chief Executive Ivan Espinosa, appointed in April following the departure of predecessor Makoto Uchida, characterised the choice as agonising but unavoidable.
He acknowledged Oppama’s deep symbolic importance, forged when it became the production birthplace of the pioneering Leaf electric vehicle in 2010, well ahead of competitors.
Espinosa pledged fair treatment for affected staff, offering transfer possibilities to other Nissan locations or support securing alternative local employment through consultations with the labour union.
I believe it’s a vital step toward overcoming our current challenges and building a sustainable future. The world is changing by the minute.
This specific closure confirms long-anticipated consolidation within Nissan’s Japanese manufacturing base, aligning with a global strategy to drastically shrink its operational footprint. The company had previously signalled intentions to reduce its worldwide assembly plants from 17 down to 10 and slash production capacity by a substantial one million units annually, from 3.5 million to 2.5 million.
While earlier announcements confirmed Japanese plant closures, Oppama’s identity remained undisclosed until this week. Espinosa confirmed this announcement concludes the planned production site closures within Japan.
Nissan confronts a dire financial reality, having plummeted to a staggering net loss of ¥670.9 billion (€3.9 billion) for the fiscal year ending March 2025. This dramatic reversal comes just a year after recording a ¥426.6 billion profit and represents the company’s most severe loss in a quarter-century.
Nissan explicitly attributes part of its financial distress to the tariff policies enacted by US President Donald Trump, which have significantly harmed its bottom line. These tariffs compound existing pressures from weakening sales and the immense costs associated with the company’s turnaround efforts.
Discussions regarding the future use of the Oppama site are ongoing, Espinosa confirmed, including potential sale or repurposing of the land. He stressed, however, that irrespective of finding a buyer, the cessation of vehicle manufacturing at the plant by March 2028 remains irrevocable.
