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[Alpha Biz= Kim Jisun] Nissan Motor Co. is reportedly considering a significant production cut at its Oppama Plant in Yokosuka, Kanagawa Prefecture, reducing output to half the current level for the next two months, according to the Yomiuri Shimbun on June 29.



The move is part of Nissan’s broader efforts to streamline operations and respond to continued underperformance and losses, which led to a recently announced plan to reduce the number of its global manufacturing plants from 17 to 10 by 2027.



The Oppama facility, a core domestic production site since its launch in 1961, has played a key role in Nissan’s manufacturing history, including the initial production of its flagship electric vehicle, the Leaf, starting in 2010. However, the plant’s utilization rate has declined sharply in recent years. Despite having an annual capacity of 240,000 vehicles, it produced only approximately 100,000 units in 2023, putting utilization at about 40%.



The planned output cut could reduce that rate to around 20%, although no job cuts are currently planned, with Nissan expected to focus instead on maintenance and line adjustments during the reduction period.



Currently, Oppama mainly manufactures the Note, a compact model whose monthly production has dropped from around 8,000 units in 2021–2024 to just 4,470 units in April 2024, as demand has weakened in the absence of a new model since late 2020.



Nissan posted a net loss of JPY 670.8 billion (approx. USD 4.4 billion) for fiscal year 2024 (April 2024 – March 2025). The company’s global production capacity remains at around 5 million vehicles per year, but actual sales in 2023 totaled only 3.1 million, highlighting significant overcapacity.



The Oppama facility’s output adjustment reflects the broader restructuring and cost-optimization strategy as Nissan navigates a challenging market landscape and ongoing profitability pressures.

 

 

 

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