Nissan Motor is reported to be considering closing multiple production facilities globally as part of an aggressive cost-cutting initiative, including those located in India, South Africa, Argentina and Mexico. As part of their plan to reduce global manufacturing footprint from 17 plants down to 10, and trim its workforce by approximately 15 percent.
Nissan India issued an official statement regarding rumors surrounding their future presence in India, saying reports regarding potential closure of plants are only speculation and do not rely on any official information of the company. They further added: At this time we are not providing additional comments; instead we remain committed to being transparent with our stakeholders and will share any updates as appropriate.”
Nissan’s restructuring strategy marks an abrupt break with previous leadership under Makoto Uchida, who pursued expansive expansion plans while resisting closure of domestic Japanese facilities. New CEO Ivan Espinosa is taking an aggressive stance in order to reverse their declining performance – vehicle sales dropped 42% since 2017 business year to just 3.3 million vehicles by fiscal 2024.
Nissan may shut down two historic Japanese plants: Oppama began production in 1961 and employs around 3,900 workers; and Shonan operates by Nissan Shatai (in which Nissan holds 50% ownership).
Notably, Nissan confirmed in its statement that it had previously announced plans to consolidate production of Nissan Frontier and Navara pickups from Mexico and Argentina into the Civac plant in Mexico. It also referenced a March announcement that French alliance partner Renault would buy out Nissan’s stake in their joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL).
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If the reported plant closures proceed, Nissan would maintain just three vehicle assembly plants in Japan: the Tochigi factory and the Nissan Motor Kyushu and Nissan Shatai Kyushu plants in southern Fukuoka prefecture. According to sources, these facilities would offer sufficient capacity to serve both Japan’s domestic market and continue exports from this nation.
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