Following the rumours of Foxconn’s interest last week, Nissan has now broken its silence, confirming that vehicle production at the Oppama plant, its long-standing mother plant, will cease by the end of 2027. The decision is part of the company’s Re:Nissan recovery plan, with production to be transferred to Nissan Motor Kyushu Co in Fukuoka Prefecture.
Under the Re:Nissan recovery plan, Nissan aims to reduce its global production capacity from 3.5 million down to 2.5 million units, while maximising plant utilisation rate to around 100%. To achieve this, the company plans to close seven of its 17 plants and reduce its workforce by 15%.
However, Nissan assures that other facilities around the plant in the Oppama district, such as the Nissan Research Centre, the Granddrive crash test and proving facility, and Oppama Wharf, will all continue to function.
As for what kind of future awaits the Oppama production plant, Nissan seems unsure of what to do next, stating in a press release that they will “explore a wide range of options to determine the most appropriate path forward”. Nissan reassures that employees in the plant will keep their jobs until the end of 2027 and will continue to discuss matters with the union once decisions are finalised.
Recently, Foxconn signed a memorandum of understanding (MoU) with Nissan’s partner, Mitsubishi Motors, to jointly develop a new electric vehicle (EV). The tech giant has also teased the announcement of a second Japanese partner coming soon. If Foxconn were to partner with Nissan and take over the Oppama plant for its EV production, it could benefit both parties while preserving jobs at the facility.
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Nissan CEO Ivan Espinosa said, “Today, Nissan made a tough but necessary decision. 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. The Oppama Plant is a proud part of our history, and its legacy will endure. I want to sincerely thank our employees, the local community, and our partners who have supported this plant with dedication and heart.”
“We will continue to operate in the Oppama area with strong support for the local community, as we carry forward the spirit of Oppama plant and work to restore Nissan’s true value,” he added.
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