Nissan Shake-Up: Global Plant Closure Rumors Ignite Industry Frenzy

Nissan Motor Co. is at the center of intense speculation following reports from Japan’s Yomiuri newspaper that the automaker is preparing to shut down several manufacturing plants worldwide as part of a sweeping restructuring effort. The rumored closures span two major facilities in Japan-Oppama and Nissan Shatai’s Shonan plant-as well as plants in South Africa, India, Argentina, and two factories in Mexico.

 

Key Highlights:

 

Global Reach of Possible Closures: It is reported that Nissan is planning to cease vehicle output at South African, Indian, and Argentine factories, as well as shutting down two Mexican factories. In Japan alone, Nissan's historic Oppama plant and Shonan factory are being considered for shutdown, a drastic change in the manufacturing presence of Nissan.

 

Key Cost-Slashing Initiative: Nissan recently unveiled plans to cut its worldwide manufacturing facilities from 17 to 10 by fiscal 2027, coupled with a 15% staff reduction and a planned decrease in yearly production capacity from 3.5 million to 2.5 million units. This follows Nissan's announcement of its worst annual loss in decades, which necessitated immediate restructuring efforts.

 

Official Reaction: Nissan reacted to the media reports by terming them speculative and unconnected with any official company data. The automaker reaffirmed its dedication to openness and clarified that it would make relevant updates known as required.

 

Industry Implication: If confirmed, they would be Nissan's first home plant closures since 2001 and mark a stunning reversal of its global strategy, particularly as the company consolidates pickup production in Mexico and withdraws from joint ventures in India.

 

The industry and Nissan's employees await official confirmation now as the company struggles through one of the toughest times in recent history.

 

Source: Bloomberg, Economic Times, Channel NewsAsia