Nissan Motor Co. is reportedly considering the closure of several manufacturing plants in Japan and overseas, including facilities in Mexico, South Africa, India, and Argentina. This move is part of a broader cost-cutting and restructuring initiative recently announced by the automaker, aiming to reduce its global workforce by 15% and cut the number of production plants from 17 to 10. NewsBytes+12Reuters+12Republic World+12
Japan: Historic Plants Under Threat
In Japan, Nissan is contemplating the shutdown of its Oppama plant in Yokosuka and the Shonan plant operated by Nissan Shatai in Hiratsuka. These facilities, operational since 1961, are significant contributors to Nissan’s domestic production capacity. If closed, it would mark the automaker’s first domestic plant shutdowns since 2001. Republic World
India: Manufacturing Operations Under Review
Nissan’s manufacturing presence in India is also under scrutiny. The company has sold its 51% shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL) to joint venture partner Renault. This indicates a strategic shift, with Renault expected to manufacture Nissan-branded models under contract.
Global Impact: Workforce and Production Cuts
The restructuring plan includes a reduction of approximately 20,000 jobs, equating to about 15% of Nissan’s global workforce. The company aims to consolidate its production facilities from 17 to 10 by 2027, focusing on enhancing efficiency and profitability.
Strategic Shift: Emphasis on Electrification
Under the leadership of CEO Ivan Espinosa, Nissan is shifting its focus towards electrification and streamlining operations. The company plans to cut costs by 500 billion yen ($3.4 billion) and return to profitability by 2026.
Conclusion
Nissan’s potential plant closures and restructuring efforts signify a significant transformation in its global operations. The company’s strategic shift towards electrification and cost efficiency reflects its response to financial challenges and evolving market dynamics.