Nissan’s situation is dire, and its new CEO is implementing drastic measures to turn around the company’s fortunes. Last week, the automaker announced it would close its Oppama Plant in Japan by March 2028. It’s one of seven Nissan plants to close, and the other six could include two factories in Mexico.
A new report from Automotive News, citing “two people with knowledge of the matter,” alleges the Japanese automaker will shutter its Civac plant by March 2027, which Nissan has been operating for nearly 60 years. It was the company’s first factory outside Japan, and currently builds the Navara and Latin America Frontier.
A company spokesperson told Autonews a final decision hasn’t been made about which plants it’ll close next.
The report also alleges that the Japanese automaker will dissolve its partnership with Mercedes-Benz early next year after it concludes producing two Infiniti crossovers, the QX50 and QX55, at its COMPAS facility. Nissan announced in January that it’d end production of the two models this December. Workers build the Infinitis alongside the Mercedes GLB.
In addition to closing seven factories, reducing the number it operates to 10, Nissan aims to lower production capacity by 30 percent by 2027 and reduce its workforce by 20,000. In May, the company announced it had paused development of certain models, reassigning employees to “focus on cost reduction initiatives,” even as the automaker works to reduce the time it takes to launch next-generation models.
Nissan’s Uncertain Future
Nissan’s new CEO has a lot of work to do, and it seems like every option is on the table. A report from earlier this month alleged Nissan might build Honda-branded trucks at its Mississippi factory. This would help Honda avoid President Donald Trump’s tariffs on imported vehicles and allow Nissan to bring the factory’s production capacity closer to full utilization. However, the company hasn’t made any official announcements.
The company is implementing its “Re:Nissan” recovery plan, which includes laying off approximately 20,000 people, primarily through plant closures. It’ll also work to bring its manufacturing utilization to 100 percent at its remaining factories. It’ll also attempt to reduce engineering costs by 20 percent, while asking suppliers to take IOUs.
If all goes according to plan, Nissan could save $3.4 billion. But this plan arrives after Nissan recorded a net loss of $4.5 billion last year.
Source: Automotive News
