TOKYO, Jul 20 (News On Japan) - Nissan Motor will shut down its historic Oppama plant in Yokosuka, Kanagawa Prefecture by the end of fiscal 2027, closing a facility that helped launch the Datsun Bluebird in 1961 and played a pivotal role in Japan’s personal car boom.
Currently, the Oppama plant manufactures compact models such as the Note and Aura. Although it has a production capacity of 240,000 vehicles annually, the facility is operating at roughly half that level.
Facing a net loss of more than 670 billion yen last fiscal year, Nissan unveiled a restructuring plan in May that includes halting operations at seven plants worldwide. As part of this overhaul, production at Oppama will be consolidated into the Kyushu plant. The company also plans to cut 20,000 jobs globally—around 15% of its total workforce.
The scale of the production cuts and layoffs recalls the sweeping reforms introduced 26 years ago by then-CEO Carlos Ghosn. In fiscal 1999, when Nissan reported a similar loss of approximately 680 billion yen, Ghosn led a bold restructuring that closed five plants, including the Murayama facility known for producing iconic models like the Skyline and Gloria, and eliminated 20,000 jobs—mirroring the scale of the current plan. That turnaround led to a V-shaped recovery within a year.
But whether Nissan can replicate that feat remains uncertain.
"In contrast to Ghosn’s cost-cutting era, today’s auto industry is undergoing a once-in-a-century transformation that makes recovery far more difficult," said economic journalist Inoue, an expert on the automotive sector.
The “once-in-a-century transformation” refers to the accelerating shift to BEVs (battery electric vehicles), hybrids, and plug-in hybrids. Vehicles not powered purely by gasoline or diesel have seen their global market share grow from around 9% to 26% over the past five years.
Chinese manufacturers are gaining significant ground in the EV market. While Tesla remains the global leader, companies like BYD, Geely, and Wuling—all based in China—are closing in. Simultaneously, IT companies are reshaping the auto industry. For example, Baidu, China’s top search engine provider, is developing autonomous driving technologies and commissioning automakers to produce vehicles—a collaboration that transcends traditional industry boundaries.
Inoue believes Nissan's response to this transformation will hinge on its relationship with Hon Hai, the Taiwanese electronics giant often discussed as a potential partner. "If Nissan joins forces with Hon Hai, known for its precision production of iPhone components, it could pave the way for advanced software-based 'next-generation vehicles'," he said.
Source: TBS
