Efficiency, Nissan Considers Closing Two Factories In Japan And Several Countries

JAKARTA Nissan's global sales in the fiscal year 2024 were recorded at 3.3 million units of vehicles, a drastic drop of 42 percent since fiscal year 2017. Now, it is reported that Nissan is considering drastic steps by closing a number of car assembly plants in Japan and several other countries, including Mexico. This step is part of the planned cost cuts previously announced by the company earlier this week.

According to sources close to the matter, Reuters reported on Monday, May 19, Nissan is thinking about closing a shophouse factory in Japan, which was Nissan's first production site since 1961. In addition, the Shonan plant operated by Nissan Shatai, where Nissan owns 50 percent of the shares, is also under consideration of closing. If this plan is realized, Nissan will only have three vehicle assembly plants in Japan.

Themal factory itself has an annual production capacity of around 240,000 cars and employed about 3,900 workers in late October. In 2010, the plant became the first for Nissan to start production of the Leaf, which is widely considered the world's first mass electric vehicle.

Meanwhile, the Shonan plant that produces commercial vans has an annual capacity of around 150,000 units and employs about 1,200 people.

Not only domestically, Nissan is also reportedly considering stopping production in factories located in South Africa, India, and Argentina. In addition, the number of factories in Mexico has the potential to be reduced. It is the Yomiuri newspaper to be the first to report the possibility of closing Nissan factories in Japan and abroad, stating that two factories in Mexico are under evaluation.

Responding to this report, Nissan through a statement on his website stated that news about the potential closure of certain factories is speculative and is not based on official company information.

"At the moment, we will not provide further comment on this matter," Nissan said in a statement. "We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates if needed."

The more aggressive turnaround measures were announced by Nissan's new CEO, Ivan Espinosa, marking a significant change in strategy compared to his predecessor, Makoto Uchida, who has high hopes of expanding global production and refusing to close factories in the country.