Nissan Motor Company recently announced its plans to undergo a significant restructuring process as part of its Re:Nissan recovery plan. The Japanese automaker revealed its intentions to close seven out of its 17 vehicle assembly plants globally and reduce its workforce by approximately 20,000 employees by the end of the 2027 financial year.
The restructuring aims to address the challenges faced by Nissan, following a reported net loss of JPY 671 billion in the 2024 financial year. While specific details are yet to be confirmed, reports suggest that Nissan is considering the closure of two plants in Kanagawa Prefecture, including the Oppama plant in Yokosuka and the Shonan plant operated by its subsidiary Nissan Shatai Company. These plants have been identified as having low capacity-utilization rates due to weak demand for the models they produce.
Despite the speculation, Nissan has not officially named any domestic plants for closure and has not initiated discussions with stakeholders such as labour unions, suppliers, and local governments. The company emphasized that the reports are speculative and not based on official information.
In addition to the domestic restructuring, Nissan has already announced the closure of plants in India and Argentina. By the end of the 2027 financial year, Nissan plans to reduce its global capacity by 30% to 2.5 million units (excluding China) as part of its strategy to focus on higher-margin products.
As Nissan navigates through this period of transformation, the company is committed to streamlining its operations and optimizing its manufacturing footprint to ensure long-term sustainability and profitability. The automotive industry is evolving rapidly, and Nissan’s restructuring efforts reflect its determination to adapt to the changing market dynamics and emerge stronger in the future.
