Nissan to shut Oppama plant amid global losses

Nissan, which has struggled at home and abroad, announced on July 15 that it will shut down its Oppama plant by the end of 2027. Following a 670.8 billion yen (about $6.3 billion) loss last year, the automaker decided to close what was once a symbol of its success. The Oppama plant has become a stark symbol of Nissan's deepening crisis.

The area around Oppama Station reflects the local economic downturn. Storefronts are worn, and many remain closed. Even the town center, once bustling, has grown quiet.

The factory lies just five minutes away by taxi from the station. “There used to be crowds in front of the station, but as Nissan's business declined, the area emptied out and the local economy suffered,” said a taxi driver in his 70s. “I’m worried things will only get worse once the plant shuts down,” he added.

The factory visit was part of a scheduled tour. Visitors were not allowed inside the facility. A Nissan employee said factory tours were suspended at the end of June due to equipment adjustments but declined to elaborate. The suspension appeared tied to the planned closure.

The tour began at the plant's guest house. Participants watched a video and attended a lecture on Nissan's history and manufacturing process. A guide described Oppama as Nissan’s “mother factory,” highlighting its key role in shaping the company’s development.

After the indoor session, visitors boarded a bus to tour the outdoor areas of the plant. The factory spans 1,699,000 square meters, roughly the size of 36 Tokyo Domes. The guide cautioned visitors that photography was not permitted anywhere on the premises. “Please keep your phones tucked away,” the guide added.

As the bus moved through the site, Tokyo Bay and the plant’s port facilities came into view. The facility enables Nissan to load finished vehicles directly onto ships. It remains a point of pride for the factory. Visitors saw an impressive scene of professional drivers lining up to load cars onto a ship.

“It’s rare to catch this timing,” the guide said. “You’re lucky to see it today.” The guide then explained the purpose of a bridge within the plant. “The factory is so large that a public road runs through it,” the guide said. “Since new cars don’t yet have license plates, they can’t use the road, so we built a bridge over it to move the vehicles to the port.”

A skybridge connecting different parts of the factory could be seen. The aging condition of the facilities, some more than 60 years old, was clearly visible. Rusted structures and faded paint reflected Nissan’s waning competitiveness.

Despite major restructuring efforts, Nissan’s troubles continue. On July 30, the company reported a 115.7 billion yen loss, or about $1.09 billion, for the April to June quarter, citing sluggish sales in Japan, the United States, and China.

According to the Nihon Keizai Shimbun, none of Nissan’s models made Japan’s list of top 10 best-selling cars in the first half of the year. Sales of the Note, a compact car primarily built at the Oppama plant, fell 18 percent year-over-year to 43,308 units.

The Nikkei noted that Nissan has not released a new model since the Serena in November 2022, worsening an already weak sales outlook. As performance continues to lag while staffing and facilities remain unchanged, factory utilization rates are falling. The paper added that the business outlook is becoming increasingly bleak.

At a July 15 press conference, Nissan Executive Vice President Ivan Espinosa announced sweeping restructuring plans. The company aims to reduce its global factories from 17 to 10 by 2027 and cut 20,000 jobs, or about 15 percent of its workforce. In Japan, where mass layoffs are rare, the announcement was met with shock. The closure of the Oppama plant is part of this plan, with production shifting to Nissan’s Kyushu subsidiary. The nearby Shonan plant will also shut down by the end of 2026.

Nissan is reportedly in talks with Taiwan-based Foxconn, also known as Hon Hai Precision Industry, to repurpose the Oppama site for electric vehicle production. The factory made headlines in 2010 when it began mass-producing the Leaf electric vehicle, beating Tesla to market by seven years. Now, it may serve as a new base for Taiwanese EV manufacturing.

Nissan described the decision to close the plant as a “painful but necessary choice” for the company’s survival. Slogans like “Stay strong, Nissan. Stay strong, Oppama,” and “Nissan has strength. Rise again!” was displayed in the showroom window of the Nissan Oppama branch near the main gate. The messages expressed hopes for the company’s revival.

About 2,400 employees work at the Oppama plant. Nissan has said it will maintain current employment through the end of 2027, with future arrangements to be discussed with the labor union. But job security beyond that remains uncertain.

Several employees expressed concern outside the factory. “The company says they’ll keep us, but who knows what will happen,” said a man in his 30s. Another worker nearing retirement said, “I’ll be gone in two years, but younger employees are unsure whether they should relocate to Kyushu or if their jobs will be secure there.”

The local Yokosuka community is also anxious. The plant has long served as a major pillar of the regional economy, and many merchants worry that business will continue to slow.

“We used to have lots of Nissan employees come in,” said a hair salon worker near Oppama Station. “With the plant shutting down, it’s a real concern. Whether it’s a Taiwanese company or someone else, I just hope something new brings life back to the area.”