"Tough, but necessary": Nissan To Shutter Flagship nipponese Plant By March 2028

Nissan Motor will cease vehicle production at its flagship Oppama plant in Kanagawa by March 2028, a move CEO Ivan Espinosa called „a tough but necessary decision” and one of „significant pain,” according to Nikkei

Production of current and upcoming models will shift to Nissan Motor Kyushu in Fukuoka, cutting manufacturing costs by an estimated 15%. Espinosa explained, „We are aiming to reduce fixed costs while increasing plant utilization rates to 100%.”

The company also plans to end production at the Shonan plant, operated by its subsidiary Nissan Shatai, following the discontinuation of NV200 orders by March 2027.

Nikkei reports that Oppama’s 2,400 employees will remain employed until the closure. Nissan pledged to communicate employment plans clearly and work with unions once decisions are finalized.

The Oppama site’s future remains undecided. Espinosa stated, “We are discussing with several partners,” and considering „different scenarios and alternatives for repurposing of the assets,” but ruled out joint ventures or contract manufacturing for now.

Espinosa acknowledged supplier concerns, saying, “We are going to discuss individually with each of them.”

The closure is part of Nissan’s broader Re:Nissan restructuring plan, announced in May, which includes reducing global assembly plants from 17 to 10 and cutting 20,000 jobs by March 2028. The company plans to lower non-China production capacity from 3.5 million to 2.5 million vehicles annually.

He confirmed no further plant closures in Japan beyond Oppama and Shonan, with any international changes to be announced later.

The Oppama plant, opened in 1961, produces Note and Note Aura models, with a capacity of 240,000 vehicles per year. Other local facilities, including Nissan’s research center and crash test site, will continue operating.