Nissan plans to significantly reduce the number of its manufacturing sites, considering the possibility of closing almost half of its plants as part of a massive cost-cutting program announced earlier this week. About this informs Reuters.
The company is considering closing two car assembly plants in Japan — in Oppama, where production began back in 1961, and in Shonan, where Nissan owns a 50% stake. If the plan is implemented, only three assembly plants will remain in Japan: in Tochigi, as well as Nissan Motor Kyushu and Nissan Shatai Kyushu, located in Fukuoka Prefecture. This will be enough to ensure domestic demand and support exports.
In addition to Japan, Nissan is also considering the possibility of stopping production at plants in South Africa, India and Argentina, as well as reducing the number of plants in Mexico. Previously, the company, which ranks third among Japanese automakers, announced serious cost-cutting measures. As part of this program, the number of factories worldwide is planned to be reduced from 17 to 10.
According to the results of the 2024 fiscal year, Nissan sales amounted to 3.3 million cars, which is 42% less than in 2017. Such dynamics forced the company to review its strategic priorities and switch to active cost reduction.
