Nissan Ponders Potential Shut Down of Domestic and Foreign Plants
Tokyo Tales: Rumors Swirl as Nissan Ponders Plant Shutdowns
(Be aware, this info is mostly speculation, with no clear confirmation yet from Nissan)
Nissan might be contemplating the shutdown of several car assembly plants, both within Japan and overseas. One can't help but wonder if the brand's storied history in Japan is about to take a significant shift.
Note: Reports are surfacing about the possible closing of Oppama plant and Shonan plant, though these ideas are not founded upon any definitive corporate announcements.
The Oppama plant, bearing witness to Nissan's birth way back in 1961, is just one of the plants under scrutiny. Shonan, a plant run by Nissan Shatai which Nissan half-owns, could see the same fate. If these closures were to happen, Nissan would then be left with only three vehicle assembly plants in Japan.
The global production landscape could experience substantial changes, too. Speculation suggests that Nissan may reconsider plants in South Africa, India, Argentina, and Mexico. The number of factories in Mexico might decrease based on unconfirmed information.
The air is ripe with change as Nissan laid out new, drastic cost-cutting measures this week. The company is aiming to reduce its workforce by roughly 15%, trimming production plants from 17 to 10 across the globe as they push for a resurgence.
Some news outlets, like the Yomiuri newspaper, have hinted at closings of factories in Japan and elsewhere. Although, Nissan has clarified their statement on their website, asserting that any reports of plant closures are mere speculation, not rooted in official company data.
It's worth noting that a more aggressive turnaround strategy unveiled by new CEO Ivan Espinosa seems to mark a considerable departure from former CEO Makoto Uchida's approach. Uchida's focus had been on expanding global production and was reluctant to shut domestic plants.
Since the 2017 financial year, Nissan's sales have plunged 42%, landing at 3.3 million vehicles. Facing these precipitous drops, the need for radical action becomes apparent.
Nissan has indicated that production of Nissan Frontier and Navara pickups will be centralized, shifting from facilities in Mexico and Argentina to be primarily based in the Civac plant in Mexico. A similar consolidation in India appears imminent following Nissan's announcement in March that Renault would purchase out their stake in the joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL).
If the domestic plant closures materialize, this would mark the first time Nissan shuts a facility since the 2001 closure of the Murayama factory. Keeping just three home plants - the Tochigi factory, Nissan Motor Kyushu, and Nissan Shatai Kyushu in Fukuoka prefecture – would likely suffice for catering to the domestic market and maintaining exports from Japan, according to sources.
The annual capacity for Oppama plant stands at around 240,000 cars and employs about 3,900 workers. In 2010, Oppama made headlines as the first plant to begin producing the Leaf, the vehicle often recognized as the first mass-market electric vehicle. The Shonan plant, focusing on commercial vans production, possesses an annual capacity of around 150,000 units and employs approximately 1,200 people.
Remember, this news doesn't represent an official position from Nissan. Therefore, it's best to keep a keen eye on any future updates from the company.
The potential shutdown of the Oppama plant, given its historical significance as the birthplace of Nissan, raises questions about a possible shift in the brand's Japanese history. Amidst the speculation, reports suggest that the Shonan plant, another Nissan-affiliated facility, may also face closure. This could lead to a major reduction in Nissan's vehicle assembly plants in Japan, potentially impacting both domestic and global production indices.
