In a bold move aimed at streamlining its global manufacturing footprint, Nissan Motor Co., Ltd. has announced that it will cease vehicle production at its historic Oppama Plant by the end of fiscal year 2027. The decision is a central part of the company’s Re:Nissan recovery strategy, which seeks to cut global production capacity by nearly 30% while boosting plant utilization rates to around 100%.
Production of current and future vehicle models at the Oppama Plant, located in Kanagawa Prefecture, will be transferred to Nissan Motor Kyushu Co., Ltd., the company’s manufacturing base in Fukuoka Prefecture. According to Nissan, this consolidation is expected to drive down manufacturing costs, enhance plant competitiveness, and improve long-term profitability in Japan.
“This wasn’t an easy decision—for me or for the company—but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future,” said Nissan CEO Ivan Espinosa in a heartfelt statement. “The Oppama Plant is a proud part of our history, and its legacy will endure.”
A Legacy Plant Enters Its Final Chapter
The Oppama Plant has long been one of Nissan’s cornerstone facilities, producing millions of vehicles over decades and playing a pivotal role in the brand’s global expansion. Its closure marks the end of an era, but not the end of Nissan’s presence in the area. The automaker confirmed that several key facilities in the Oppama district—including the Nissan Research Center, GRANDRIVE test track, crash test facilities, and the Oppama Wharf—will remain fully operational.
In the meantime, all employees currently working at the Oppama Plant will retain their positions until the end of fiscal year 2027. Nissan has committed to clear communication and union consultations regarding post-closure employment arrangements, signaling a socially responsible transition strategy.
Strategic Shift Under Re:Nissan
The move comes as part of a larger realignment under Re:Nissan, which aims to reduce the automaker’s global production capacity (excluding China) from 3.5 million units to 2.5 million. Nissan has been systematically consolidating its 17 global production sites to just 10, with Japan playing a key role in that transformation.
Kyushu, known for its robust logistics and workforce efficiency, has emerged as the ideal candidate to absorb the production load. By centralizing operations there, Nissan expects to unlock significant economies of scale while freeing up capital for innovation and electrification efforts.
Next-Gen Models and Phasing Out of Aging Lines
As part of the same announcement, Nissan confirmed that production of the aging NV200 van at the Nissan Shatai Shonan Plant will conclude in fiscal year 2026. A successor model is planned for launch in 2027, with more details to follow. Additionally, the consignment of the AD model is set to end in October 2025, further streamlining Nissan’s domestic lineup.
While the final fate of the Oppama Plant site remains undecided, Nissan said it is actively evaluating “a wide range of options” for its future use. Possibilities could include transformation into a technology hub, R&D center, or sustainable mobility campus.
End of Consolidation Phase
With this announcement, Nissan concludes all planned vehicle production consolidations in Japan under the Re:Nissan initiative. The company is expected to disclose related financial impacts in its upcoming first-quarter earnings report.
A Turning Point for Nissan
Though difficult, the closure of Oppama’s vehicle production line marks a turning point for Nissan. With the brand still rebuilding after years of financial volatility and market pressures, the Re:Nissan plan signals a more focused, cost-efficient, and future-facing strategy.
As the global automotive industry pivots toward electrification and software-defined vehicles, Nissan’s restructuring—though painful in the short term—may well be the reset it needs to compete on tomorrow’s terms.
Source: Nissan