Nissan has officially confirmed that it will cease production at its historic Oppama plant in Japan by March 2028. This bold step is part of a larger global restructuring plan aimed at reducing manufacturing capacity and streamlining operations. Once hailed as the heart of Nissan’s global ambitions, the Oppama facility is now being phased out in favor of consolidating operations at Nissan Motor Kyushu in Fukuoka.
So what does this mean for Nissan’s future and the workers at Oppama? Let’s break it down.
The End of an Era: Oppama Plant to Halt Production
The Oppama factory has been one of Nissan’s most iconic facilities. Located in Yokosuka, just south of Tokyo, the plant began operations back in 1961 and was once a symbol of Japan’s automotive rise. It holds the distinction of producing over 17.8 million vehicles over the decades and currently employs about 3,900 workers.
But with falling sales and excess production capacity, Nissan has made the tough call to wind down manufacturing here. The decision reflects a shift in strategy, as the company now aims to operate with fewer but more efficient production hubs.
Why Is Nissan Closing Oppama?
This move is part of CEO Ivan Espinosa’s turnaround strategy, which includes cutting:
- Global vehicle production capacity from 3.5 million to 2.5 million units
- Total manufacturing sites from 17 to 10 globally
The goal is to increase factory utilization and lower operational costs. According to Espinosa, the current domestic utilization rate is just 60%. Once Oppama’s operations move to Nissan Kyushu, utilization at that plant is expected to hit 100%, helping Nissan become leaner and more efficient.
“It was a difficult decision for both myself and the company,” said Espinosa during a press conference in Yokohama. “However, we believe it is necessary for Nissan to overcome its current challenging situation.”
What Happens to the Workers at Oppama?
Of the 3,900 workers at the plant, about 2,400 employees are likely to be transferred to other roles, including:
- Non-factory functions within Nissan
- Other plants like Nissan Motor Kyushu
The company has not announced any mass layoffs yet and appears to be working on redeployment plans to reduce the impact on employees.
Light Commercial Vehicles to See Changes Too
In addition to shutting down Oppama, Nissan will also stop production at the Shonan plant of Nissan Shatai by March 2027. This factory is mainly responsible for light commercial vehicles.
This is a clear sign that Nissan is trimming down its domestic production footprint in Japan across all types of vehicles, from sedans to vans, to adapt to global demand realities.
Foxconn May Step In
Interestingly, Nissan is also exploring options to repurpose the Oppama facility instead of abandoning it. According to a report by Reuters, Foxconn (the Taiwanese electronics manufacturing giant) may use the plant to produce electric vehicles (EVs).
While Espinosa confirmed discussions are ongoing with “multiple partners,” he declined to give further details, citing confidentiality agreements.
If Foxconn steps in, this could give the site a new lease of life while allowing Nissan to avoid a full shutdown scenario. It also aligns with the broader industry trend where traditional automakers and tech firms are increasingly collaborating on EV production.
What About Other Facilities at Oppama?
While vehicle production is being discontinued, other operations at the Oppama campus will continue. These include:
- The Nissan Research Center
- A crash-test facility
- Various administrative and R&D functions
This means that the area will still play a role in Nissan’s future, albeit a different one.
Financial Implications Still Under Wraps
Nissan has not yet disclosed the exact costs associated with transferring production to Fukuoka. The company has stated it will share financial details along with its Q1 results.
However, given the scale of the changes, the transition is likely to involve significant investments in logistics, equipment relocation, employee training, and facility upgrades.
Nissan’s Current Struggles
Nissan has been dealing with a mix of declining global sales, particularly in the U.S. and Chinese markets, and large debt obligations. The need to realign its manufacturing strategy comes as part of a broader survival and revival plan.
This downsizing aims to help the automaker focus more on high-demand products and new mobility solutions, such as EVs and connected vehicles, instead of spreading itself thin with underperforming plants.
Key Highlights
• Nissan will shut its Oppama plant by March 2028, ending production at the iconic facility
• 3,900 workers affected, with 2,400 possibly relocated to other plants or functions
• Plant consolidation will shift operations to Nissan Motor Kyushu in Fukuoka
• Global production capacity to shrink from 3.5M to 2.5M vehicles, and sites from 17 to 10
• Nissan Shatai’s Shonan factory to stop making light commercial vehicles by March 2027
• Nissan is in talks with partners like Foxconn to potentially reuse Oppama for EV production
• Other Oppama facilities such as the research center and crash lab will continue operations
• Financial details on the transfer will be revealed with Q1 earnings
• Strategy aims to improve plant utilization, cut costs, and focus on EV transformation