Nissan Motor Co. confirmed its full commitment to the Nissan restructuring plan on Tuesday, unveiling multiple factory shutdowns.
President Ivan Espinosa announced the company will close the Shonan plant by the end of fiscal 2026. Nissan will also shut its iconic Oppama plant in Yokosuka, Kanagawa Prefecture, by the end of fiscal 2027. Espinosa admitted the decision was painful but essential to return Nissan to growth and stability.
The Oppama plant served as a key site for developing Nissan’s production technology for many decades. Espinosa denied reports of a joint electric vehicle venture with Hon Hai Precision, a Taiwan-based manufacturer.
Nissan produced only 640,000 vehicles in fiscal 2024, despite having a 1.2 million-unit production capacity in Japan. The Nissan restructuring plan comes amid external pressures, including declining China sales and heavy U.S. tariffs.
Domestic sales are projected to reach only 220,000 units in early 2025, the lowest in 30 years. Between April and June 2025, Nissan expects operating losses of around ¥200 billion.
Tariffs introduced by U.S. President Donald Trump could slash Nissan’s annual profit by ¥450 billion. Espinosa noted that export potential remains limited due to the ongoing tariff risks.
In China, fiscal 2024 sales fell 12% year-over-year, impacted by competition from local automakers. While the N7 electric sedan has performed well, Nissan faces pressure from ongoing price competition.
The Nissan restructuring plan aims to boost productivity by raising output at 10 remaining global factories to near full capacity.Investor confidence has declined. Shares hit a 16-year low in July, briefly falling below ¥300.
Nissan had previously discussed forming a holding company with Honda but ended talks in February 2025. Japan’s Economy Ministry and Mizuho Bank urged Nissan to resume talks with Honda.
Espinosa responded by reaffirming the company’s commitment to the current Nissan restructuring plan, not external alliances. Nissan now focuses on self-reliant recovery through factory closures, cost cutting, and operational efficiency.
