In a sobering announcement that signals a major shift in its global manufacturing strategy, Nissan Motor Co. has confirmed it will shut down vehicle production at its Oppama plant in Japan by the end of the 2027 fiscal year. Once a cornerstone of the automaker’s domestic and international expansion, the facility—active since 1961—will be phased out as part of the broader Re:Nissan recovery plan. The closure underscores the scale of the challenges facing the company after years of financial setbacks and operational inefficiencies.
Summary Points:
- Nissan will end vehicle production at Oppama plant by FY 2027
- The plant currently builds the Note and Note Aura
- Oppama has produced iconic models like the Leaf, Cube, and Bluebird
- Production will shift to Nissan Motor Kyushu plant
- Re:Nissan plan aims to cut global capacity from 3.5M to 2.5M units
- Campus facilities like the Research Center and crash lab will remain open
- Nissan aims to consolidate its global plants from 17 to 10
- Production of NV200 to end at Shatai Shonan plant in FY 2026
- CEO Ivan Espinosa calls the decision “tough but necessary”
A Landmark Factory Faces the End
Opened in 1961, the Oppama plant has been a historical anchor for Nissan’s production footprint. Located in Yokosuka, south of Tokyo, it has been a production site for multiple generations of vehicles—from the iconic Bluebird and quirky Cube to the globally significant Nissan Leaf, one of the world’s first mass-market EVs.
The plant currently employs around 2,400 workers and builds the Note and Note Aura, models that remain important in Japan’s domestic market. But dwindling global demand, rising costs, and under-utilization of manufacturing assets have pushed Nissan to make tough decisions.
Nissan Recovery Plan: Reducing Overcapacity
The shutdown of Oppama comes as part of Nissan’s Re:Nissan plan, a sweeping restructuring strategy designed to stabilize the company following years of turmoil, executive shakeups, and financial losses.
One of the plan’s cornerstones is to reduce global production capacity from 3.5 million units to 2.5 million units (excluding China). This 1-million-unit cut aims to lift overall plant utilization rates to around 100%, a significant leap from current levels.
Additionally, Nissan plans to consolidate its global manufacturing network from 17 sites down to 10—a dramatic reduction that reflects broader industry trends toward leaner, more agile production.
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Transition to Nissan Motor Kyushu
In its official statement, Nissan confirmed that “current and future models scheduled for production at Oppama will be manufactured at Nissan Motor Kyushu.” This facility, which began operations in 1976, already produces the Serena and X-Trail for the domestic market, as well as the Rogue SUV for international markets.
The transfer will not only streamline logistics and lower costs but also help Nissan optimize its investments and production resources. However, the shift raises serious concerns about job transitions and economic impacts for the Yokosuka area.
Campus Will Remain Open: R&D and Safety Testing Continue
Though production will cease, the Oppama site will not be fully shuttered. Key facilities such as the Nissan Research Center, crash test facility, and wharf will continue operating, keeping the Oppama name active within Nissan’s ecosystem.
The automaker emphasized that it would maintain a presence in the area and engage with employees, unions, and local authorities to discuss future uses for the facility and support measures for affected staff.
Additional Cuts: NV200 Production Ending at Shatai Shonan
In a related announcement, Nissan also confirmed that production of the NV200 van will end at the Shatai Shonan plant in fiscal year 2026. A successor model is expected to be introduced the following year, but the change again illustrates the depth of Nissan’s restructuring and product rationalization strategy.
CEO Statement: “A Vital Step”
Nissan CEO Ivan Espinosa addressed the gravity of the decision, stating:
“Today, Nissan made a tough but necessary decision. It wasn’t easy – for me or for the company – but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future.”
Espinosa reaffirmed Nissan’s ongoing commitment to the Oppama region, noting the company’s intent to “carry forward the spirit of the Oppama plant” and support the local community during the transition.
Conclusion: A Symbolic Shift for Nissan’s Future
The closure of the Oppama plant, one of Nissan’s most historic and symbolic manufacturing sites, marks a turning point for the Japanese automaker. As the company tightens its global operations and confronts the realities of a rapidly evolving auto industry, this move reflects Nissan’s urgency in restoring profitability and efficiency.
While emotionally charged, especially for longtime employees and local stakeholders, the decision aligns with global trends of plant consolidation, cost control, and production localization. The road ahead for Nissan is challenging, but decisive steps like this may be essential in securing long-term viability.
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