Nissan weighs global factory closures in major restructuring plan

Nissan is facing mounting pressure to overhaul its global operations after reporting a significant financial setback. As part of its newly announced ‘Re: Nissan’ turnaround strategy, the automaker is considering the closure of seven production plants worldwide by March 2028. While the specifics of the facilities on the chopping block are yet to be confirmed, Reuters has reported that factories in Asia, Africa, Latin America, and other regions could be included in Nissan’s bid to reduce costs and restore profitability.

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Factories in Japan are up for closure too

Two of Nissan’s domestic plants—Oppama and Shonan—are reportedly under review.

• Oppama Plant: Produces the Nissan Leaf and Note, with an annual capacity of 240,000 units. It employs around 3900 people.

• Shonan Plant: A commercial vehicle joint venture with an output of 150,000 units per year. It builds models such as the NV200 Vanette, Caravan, and AD Wagon and employs approximately 1200 workers.

The last time Nissan shut down a domestic plant was in 2001 under the leadership of Carlos Ghosn – the Murayama. If the Oppama and Shonan plants do get closed under this restructure, Nissan will be left with just three factories in Japan: one in Tochigi and two in Kyushu.

Global plants under scrutiny

Beyond Japan, Nissan is reportedly evaluating plant closures in:

• South Africa and Argentina: Both manufacturing locations may cease operations as Nissan looks to consolidate resources.

• India: The company plans to exit its joint manufacturing operation, following Renault’s move earlier this year to take full control of the facility, which currently builds models for both brands.

• Mexico: Nissan aims to consolidate its operations here, particularly concerning production of the Navara ute, which is also manufactured in Thailand and Argentina.

UK and U.S. plants exempted

Nissan has confirmed that its Sunderland plant in the UK—which builds the Qashqai, Juke, and Leaf, is not under threat. Likewise, the brand’s production facilities in the United States are expected to remain operational as the company prioritises strategic markets and models. As per the Re:Nissan plan, it will be running 10 production plants globally by 2028, down from 17.

Broader cost-cutting measures

The factory closures form part of a wider cost-reduction initiative under the ‘Re: Nissan’ plan announced just a week ago. Additional measures include:

• Workforce Reduction: A planned cut of 20,000 jobs globally by March 2028. This could include the workforce axed as part of the factory closures as well.

• R&D Optimisation: Efforts to enhance efficiency within the research and development sector.

• Product Delays: Temporary suspension of new model development for vehicles scheduled beyond March 2027.

Read More: Nissan lays off 11,000 jobs in the UK.

Conclusion

As Nissan navigates one of the most challenging financial periods in its recent history, the company’s willingness to reassess long-standing operations—even in its home market—underscores the scale of the transformation underway. While specifics remain subject to final confirmation, the potential closures reflect a decisive shift towards leaner, more targeted global operations aimed at securing long-term sustainability.