Nissan mulls Japan, global plant closures in cost-cutting overhaul
Nissan is considering plans to shut two car assembly plants in Japan and overseas factories, including in Mexico, as part of a cost-cutting initiative.
Sources informed Reuters on Saturday that the automaker is contemplating the closure of Japan's Oppama plant, where Nissan commenced production in 1961, along with the Shonan plant operated by Nissan Shatai, in which Nissan holds a 50% stake.
This closure would leave the company with only three vehicle assembly plants in Japan, the sources noted, adding that Nissan is also evaluating the possibility of ceasing production at plants in South Africa, India and Argentina, as well as reducing the number of factories in Mexico.
The Yomiuri newspaper, which was the first to report the potential closure of Nissan plants in Japan and overseas, stated that two factories in Mexico are under review.
However, Nissan issued a statement on its website asserting that reports regarding the potential shutdown of certain plants were speculative and not based on official company information.
Japan’s third-largest automaker unveiled extensive cost-cutting measures on Tuesday, announcing plans to reduce its workforce by approximately 15% and scale down its global production plants from 17 to 10 as part of its turnaround strategy.
Krungthep Turakij reported that one of these measures includes the consolidation of production lines at two Nissan factories in Thailand in an effort to revitalise the company following significant losses in the 2024 financial year.
Meanwhile, a source informed Kyodo News on Sunday that Nissan will invite applications for early retirement from administrative staff in Japan this summer—the first such move in 18 years.
The early retirement packages, set to be offered in July and August, will be available to employees in sales and accounting, while those in development and production roles will be excluded.
The programme, targeting workers aged 45 to 64, is part of the automaker’s broader plan to reduce its global workforce by approximately 20,000. While employees have already been notified, the number of applications to be accepted has not been disclosed, the source stated.
