Nissan Motor Co. is reportedly considering the closure of two assembly plants in Japan and several overseas facilities, including in Mexico, as part of a major cost-cutting initiative aimed at returning to profitability by 2026.
Restructuring Details:
Japan Plants: The Oppama plant (operational since 1961) and the Shonan plant (operated by Nissan Shatai) are under review for closure.
Overseas Plants: Facilities in Mexico, Argentina, India, and South Africa are also being considered for shutdown.
Workforce Reduction: Plans to cut approximately 15% of the global workforce, equating to around 20,000 jobs.
Plant Reduction: Aiming to reduce the number of production plants from 17 to 10 by 2027.
Financial Losses: Reported a net loss of ¥670.9 billion ($4.5 billion) in the last fiscal year, with declining sales in key markets like China.
Re:Nissan Plan: Under new CEO Ivan Espinosa, the company aims to cut costs by ¥500 billion and focus on electric vehicle production.
Nissan has stated that reports regarding plant closures are speculative and that no final decisions have been made.
