Beaten By Nissan Electric Car Battered, Closes Factory To Global Restructuring

- Nissan Motor Co central kntor building in Japan (@unistanmotor)

JAKARTA - Nissan Motor Co. is rumored to be closing two car factories in Japan as part of a massive global restructuring step that the company is currently running.

The two affected facilities are in Kanagawa Prefecture, namely the Shawana factory and the Shonan factory managed by Nissan Shatai's subsidiary.

This news was first reported by the Yomiuri Shimbun newspaper and quoted by the Economic Times, Sunday, May 18. Themal factory itself has been operating since 1961 and is known as the production base for the Nissan Leaf electric car, while the Shonan plant produces commercial vehicles such as vans.

In addition to Japan, Nissan is also considering closing two production facilities in Mexico, as well as reviewing possible production cessation in South Africa, India, and Argentina.

This move is in line with Nissan's cost-saving strategy, including plans to cut 15% of the global workforce and reduce the number of factories from 17 to just 10 in the 2027 fiscal year.

"This closure is part of global consolidation to improve operational efficiency," a Nissan spokesperson said in an official statement.

Previously, Nissan had concentrated the production of the pickup models Frontier and Navara at a facility at the Civac factory, Mexico, as part of an effort to streamline the global supply chain.

However, Nissan said reports regarding the closure plan were still speculative. "We will not provide further comments. We remain committed to maintaining transparency with stakeholders," wrote Nissan.

If realized, this will be the first domestic plant closure since Nissan closed Murayama's 2001 'an important milestone in the company's history.

As an illustration, themen's factory has a production capacity of around 240,000 units per year and employs nearly 3,900 people. The Shonan factory has a capacity of 150,000 units with around 1,200 employees.

On the other hand, Nissan also strengthened his partnership with Renault. In March, Renault officially took over full ownership of a joint venture company in India, Renault Nissan Automotive India Private Ltd (RNAIPL).

This closure plan marks a new chapter in Nissan's restructuring which will not only have an impact on Japan, but also on the global production ecosystem.

This consolidation shows Nissan's focus on efficiency and adaptation to the challenges of the global auto industry, including the transition to electric vehicles and post-pandemic cost pressures.