Nissan Shuts Down Historic Oppama Plant to Streamline Global EV Production

Nissan Motor Co. has announced the closure of vehicle production at its Oppama plant in Japan by the end of fiscal year 2027, a strategic move tied to the company’s push for profitability amid evolving electric vehicle demands. This decision affects a facility that pioneered the mass-market EV with the Nissan Leaf in 2010.

Strategic Overhaul for Profitability

Nissan aims to return to profitability by fiscal year 2026 through a comprehensive plan that shrinks its global manufacturing footprint, reports AutomotiveDive. The company will consolidate from 17 plants worldwide to just 10 by fiscal year 2027.

Production from Oppama will shift to the Nissan Motor Kyushu Co. facility in Fukuoka, which Nissan states will “significantly reduce manufacturing costs in Japan.” This raises questions about efficiency gains in a competitive EV landscape.

Building on that, Nissan plans to cut global production from 3.5 million units—excluding China—to 2.5 million units while achieving 100% plant utilization. The automaker has confirmed no further production adjustments in Japan beyond this closure. These steps reflect broader industry trends where legacy automakers optimize operations to fund EV transitions, balancing cost reductions with innovation investments.

“Today, Nissan made a tough but necessary decision,” CEO Ivan Espinosa said reportedly. “It wasn’t easy—for me or for the company—but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future.”

Operational Continuity and Worker Implications

The Oppama plant, spanning 18.2 million square feet, opened in 1961 and has manufactured 17.8 million vehicles over its history. While vehicle assembly ends, Nissan will preserve other functions in the area, such as a research center and crash test facility. This continuity supports ongoing R&D critical for EV advancements, like battery tech and safety features.

Approximately 2,400 employees at the production site will stay on payroll until fiscal year 2027 concludes. Nissan is still developing plans for their future roles, which could involve reassignments or retraining. Such measures highlight economic implications for workers in manufacturing hubs, where EV shifts demand new skills but also risk job displacements if not managed carefully.

Delays in U.S. Electric SUV Rollout

In the United States, Nissan is postponing the production start of two electric SUVs at its Canton, Mississippi, plant by 10 months, now set for 2028. The company describes this as a strategic choice rather than a direct response to policy shifts. This delay could influence EV adoption timelines for consumers, as it pushes back availability of new models amid growing demand for affordable electric options.

Operational impacts extend to supply chains, where such postponements might allow for refinements in design or integration of updated technologies, ensuring competitiveness against rivals like Tesla or Ford. Enthusiasts monitoring EV trends should note how these adjustments align with market pressures, including raw material costs and consumer preferences for longer-range vehicles.

Broader Global Manufacturing Adjustments

Nissan’s consolidation extends internationally. In May, the company unified production of Frontier and Navara pickups at its Morelos, Mexico, plant, previously divided with an Argentine facility. This streamlines logistics and reduces overheads, potentially lowering prices for EV-related components shared across models.

Additionally, in March, Nissan divested its 51% stake in Renault Nissan Automotive India Private to partner Renault Group. However, vehicle production in India continues through the ongoing alliance, preserving market presence in a region with rising EV interest. These moves underscore regulatory and economic considerations, as partnerships help navigate tariffs and local content rules while focusing resources on high-growth EV segments.

Overall, Nissan’s actions signal a pivotal shift toward leaner operations, with implications for EV innovation and affordability. As the industry evolves, such restructurings could enhance sustainability efforts, though they demand careful oversight to mitigate disruptions for stakeholders.