Nissan is closing its flagship factory in Oppama, Japan, to cut costs and moving all its production there to another plant in southwestern Japan.

Vehicle production at the Oppama plant in Kanagawa Prefecture south of Tokyo, will end at the end of the 2027 fiscal year, in March 2028, the Japanese carmaker said on Tuesday.

After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, in Fukuoka Prefecture. The Oppama plant has been a prized symbol for Nissan, which rolled out its Leaf electric car there in 2010, ahead of key rivals.

Chief Executive Ivan Espinosa, who took on the job in April, said the decision was extremely difficult, calling the Oppama plant “an icon for Nissan.” He promised employees will be treated fairly and responsibly, with transfer offers to other locations, or other work in the area in consultation with the labour union. The plant now employs 2,400 people.

“I believe it’s a vital step toward overcoming our current challenges and building a sustainable future,” he said.

“The world is changing by the minute,” he told reporters at a hastily called news conference at Nissan’s Yokohama headquarters.

Nissan President and CEO Ivan Espinosa announced that the carmaker will halt vehicle production at its flagship Oppama Plant by the end of fiscal 2027. Photo: EPANissan President and CEO Ivan Espinosa announced that the carmaker will halt vehicle production at its flagship Oppama Plant by the end of fiscal 2027. Photo: EPA

AloJapan.com