Nissan announced on July 15, 2025, that its Oppama plant will cease production by the end of fiscal year 2027. Vehicle manufacturing operations will be transferred to Nissan Motor Kyushu located in Fukuoka Prefecture. Subsidiary Nissan Shatai's Shonan plant is also scheduled to stop production by the end of the fiscal year 2026.
According to reports from Reuters, Nikkei, and Mainichi, Nissan stated that although vehicle production at the Oppama plant will halt, the surrounding integrated research center, crash test facilities, and dedicated port infrastructure will continue operating.
Transformation talks with Foxconn
Regarding plans for the Oppama plant after production ends, Nissan is exploring a wide range of options to find the best solution. In terms of land use, negotiations are underway with Taiwanese manufacturer Foxconn.
During a briefing on July 15, 2025, Nissan CEO Ivan Espinosa only confirmed the decision to end vehicle production at the Oppama plant. He stated that while discussions about the plant's future use involve multiple partners, details cannot yet be disclosed.
Despite confidentiality obligations limiting disclosure, Espinosa further explained that no joint ventures or contract manufacturing agreements with other companies have been discussed for the Oppama plant. Nissan aims to utilize the facility post-closure primarily through real estate sales or other means.
Japanese media reports previously suggested a possible collaboration between Nissan and Foxconn to produce electric vehicles at the Oppama plant. However, Espinosa's latest remarks indicate Nissan does not favor using the current Oppama plant for such cooperation but prefers selling the plant after closure, without restricting potential buyers.
Impact on workforce and operations
If no buyer is found, Espinosa said the plant would remain closed. Should the site be repurposed, it might become a logistics hub or data center, aligning with industrial development plans set by the Yokosuka city government.
The Oppama plant currently employs 2,400 workers and is one of Nissan's three major plants in Japan. Espinosa pledged that employees will continue working until the end of fiscal year 2027, with subsequent employment and work arrangements to be negotiated promptly with staff and labor unions to minimize impact.
Espinosa stressed that there will be no further factory reductions within Japan. Regarding the future of employees at Nissan Shatai's Shonan plant, he stated that decisions will be made independently by the subsidiary.
Currently, Nissan's domestic plants operate at approximately 60% capacity. By halting production at the Oppama and Shonan plants, Nissan expects to raise utilization rates to 100%, reducing domestic production costs by 15%.
Article edited by Jerry Chen
