Nissan Is Thinking About Shutting Down Operations Overseas And In Japan

According to sources, Nissan is contemplating the closure of two car plants in Japan and overseas, including one in Mexico, as part of a cost-cutting strategy announced earlier this week. The company is looking at shutting down Japan’s Oppama plant, which started production in 1961, and the Shonan plant operated by Nissan Shatai, in which Nissan has a 50% stake, leaving it with only three vehicle assembly plants in Japan. Overseas, Nissan is also considering stopping production at plants in South Africa, India, and Argentina while reducing the number of factories in Mexico. These potential closures are part of Nissan’s recent efforts to cut costs by reducing its workforce by around 15% and consolidating production facilities globally. The company emphasized that reports on the plant closures are speculative and not official information. The new CEO, Ivan Espinosa, has introduced more aggressive turnaround measures compared to the previous strategy, aiming to reverse the company’s declining sales. Nissan recently announced consolidating the production of pickups from Mexico and Argentina into a single production hub in Mexico. It was also disclosed that Renault, Nissan’s alliance partner, would acquire Nissan’s stake in their joint Indian business. If the closures happen, it would be Nissan’s first plant shutdown since 2001.