Nissan Closes Oppama, Shonan Plants
Analysis based on 6 articles · First reported Jul 15, 2025 · Last updated Jul 16, 2025
The market will likely view Nissan's plant closures as a necessary but painful step in its restructuring, potentially leading to short-term negative sentiment due to job cuts and operational changes. However, the long-term goal of reducing fixed costs and increasing plant utilization could improve Nissan's financial health, positively impacting its stock price.
Nissan announced the closure of its flagship Oppama plant in Kanagawa by March 2028 and the Shonan plant, operated by its subsidiary Nissan — Nissan Shatai, by March 2027. This decision, described by CEO Iván Espinosa de los Monteros as 'tough but necessary,' is part of Nissan's broader Re:Nissan restructuring plan. Production from Oppama will be transferred to Nissan in Fukuoka, aiming to cut manufacturing costs by 15% and increase plant utilization to 100%. The restructuring also includes reducing global assembly plants from 17 to 10 and cutting 20,000 jobs by March 2028. While 2,400 employees at Oppama will remain employed until closure, their future employment plans are being discussed. Nissan is exploring options for repurposing the Oppama site but has ruled out joint ventures or contract manufacturing for now. The company faces challenges from declining sales in the United States and China, large debt repayments, and mounting losses, with domestic factory utilization at an average of 60%.
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