News On Japan

Nissan Plant Closure Raises Alarm in Kitakyushu Over Job Losses

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

News On Japan
POPULAR NEWS

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS
         

MORE Business NEWS

A series of cyberattacks has exposed millions of personal records belonging to customers of major Japanese companies, including Muji, Matsuya and All Nippon Airways, as well as individuals connected to the Foreign Ministry, while cybersecurity experts investigating a separate attack involving GMO say a serious mistake by the hackers may provide crucial clues to their identities.

Japan's furniture and home goods retailer Nitori opened what it describes as its largest store in the world on October 30th in Osaka's Chayamachi district, bringing a major new retail destination to an area east of Hankyu Osaka-Umeda Station known for its youth culture, fashion boutiques, and specialty shops.

Japan's Nikkei 225 Stock Average plunged 1,369.36 points, or 2.12%, to close at 63,290.11 at 3:30 p.m. on Friday, October 30, ending a three-day winning streak as a sharp selloff in semiconductor and artificial intelligence-related shares swept through the Tokyo market, while the Bank of Japan's decision to leave interest rates unchanged failed to restore investor confidence.

The Bank of Japan announced on October 30th that underlying inflation has effectively reached its 2% target for the first time since the goal was introduced in 2013, marking a major milestone in the country's efforts to achieve sustained price growth, while keeping its benchmark interest rate unchanged at 1.25% as policymakers assess the impact of last month's rate increase.

Halloween celebrations across Japan are becoming increasingly expensive as October 31 approaches, with costume prices nearly doubling over the past five years and the average spending budget rising to 8,148 yen, prompting more people to find creative ways to enjoy the annual event without stretching their finances.

Hands Shibuya, one of Tokyo's best-known variety stores, will close on November 15 after 48 years in business, bringing an end to a shopping destination famous for its enormous selection of innovative household goods, stationery and unusual gadgets, with around 100,000 products still filling its shelves in the final weeks before closure.

Tokyo stocks extended their recovery on Thursday, October 29, with the Nikkei 225 closing at 64,659.47 points at 3:30 p.m., up 705.28 points, or 1.10%, from the previous session, as renewed buying of semiconductor and artificial intelligence-related shares helped the benchmark record its third consecutive daily gain ahead of the Bank of Japan's monetary policy decision.

GMO has announced a reward totaling approximately 150 million yen for information leading to the identification of hackers responsible for a cyberattack on its systems, while also pledging compensation to customers whose personal information has been exposed, as Japan faces a growing wave of cyberattacks targeting major companies.