Kitakyushu, May 16, 2025 (News On Japan) - Nissan's plan to shut down several of its production facilities has drawn concern from Kitakyushu Mayor Kenji Takeuchi, who said at a press conference on May 15th that the move is "a matter directly linked to citizens' employment and livelihoods."
At a media briefing on May 13th, Nissan announced that it intends to close seven factories in Japan and overseas by fiscal 2027. The automaker currently operates two plants in the town of Kanda, Fukuoka Prefecture, and a network of affiliated companies has developed in the surrounding areas, including neighboring Kitakyushu.
Nissan Motor has been undergoing a sweeping structural review of its global production network as it seeks to streamline operations and improve profitability. As part of this restructuring effort, the company announced plans on May 13th to close seven manufacturing plants worldwide by fiscal 2027. While details of overseas closures have drawn international attention, the domestic implications in Japan have sparked particular concern, especially in regions where Nissan facilities play a central economic role.
In Japan, Nissan currently operates several key factories, including facilities in Tochigi, Yokohama, Oppama, and Kyushu’s Kanda and Fukuoka areas. These factories serve not only as production sites for vehicles and engines but also as critical employers in their respective regions. The plant in Oppama, located in Kanagawa Prefecture, is known for its production of small cars and electric vehicles, including the Nissan Leaf. Meanwhile, the Yokohama plant functions as a powertrain development and engine manufacturing hub, housing much of the company’s engineering expertise. The Tochigi plant, another vital site, has recently undergone retooling to produce high-end models on the company’s new EV-focused platform.
Particularly under scrutiny is the Kyushu region, where two Nissan plants in Kanda Town, Fukuoka Prefecture, serve as major contributors to local employment and industrial supply chains. These plants are surrounded by a network of affiliated parts suppliers and subcontractors, many of which are heavily dependent on Nissan’s production volumes. The potential downsizing or closure of these facilities raises fears not only of direct job losses but also of ripple effects throughout the regional economy. Kitakyushu Mayor Kenji Takeuchi, whose city borders Kanda, has expressed deep concern about the socio-economic impact, noting that over 1,000 city residents work at the plants, with many more involved through related industries.
Nissan’s management has acknowledged these concerns. During a recent meeting with Mayor Takeuchi, President Makoto Uchida reportedly affirmed that the Kanda facilities are considered strategically important and said the company would make every possible effort to preserve jobs and sustain production activity. Nonetheless, the looming prospect of consolidation or closure underscores the fragile state of regional economies reliant on Japan’s aging industrial infrastructure and a shrinking domestic auto market. The final decision on which plants will be shuttered remains undecided, but the announcement has already set off alarms among local governments, labor unions, and business associations that fear long-term erosion of manufacturing capacity in areas once central to Japan’s postwar industrial rise.
In the May 15th briefing, Takeuchi noted that "over 1,000 Kitakyushu residents are employed there, and including related companies, it is clearly an issue that directly affects the employment and daily lives of our citizens."
Takeuchi also revealed that during a recent meeting with Nissan President Makoto Uchida, he urged the company to minimize the impact of the Kanda plant closure on the regional economy.
According to Takeuchi, the president responded by saying the plant is "an important base" and that Nissan would "make every possible effort" regarding jobs and production.
Source: KBC
