Key Facts
• Nissan to close Oppama factory in Yokosuka, Japan, a symbolic production site.
• Factory closure part of restructuring to address overcapacity and financial losses.
• Nissan’s domestic production capacity: 1.2 million units; 2024 output forecast: 640,000 units.
• Domestic sales (Jan–Jun 2025): 220,000 units, lowest in 30 years.
• Operating loss (Apr–Jun 2025): ¥200 billion; projected tariff impact (FY2026): ¥450 billion.
• U.S. tariffs and weak Chinese sales hinder recovery; China sales fell 12% in FY2024.
• EV sedan ‘N7’ sees strong sales in China but faces intense price competition.
• Nissan aims to raise factory utilization to nearly 100% by closing Oppama and Shonan plants.
• Stock price dropped below ¥300 in July 2025, lowest in 16 years.
• Talks of merger with Honda ended in February 2025; Nissan prioritizes independent recovery.
Summary
Nissan announced the closure of its Oppama factory in Yokosuka, Japan, a key production site known as the ‘Mother Factory,’ as part of its aggressive restructuring efforts. The decision comes amid financial struggles caused by U.S. tariffs and declining sales in China, the world’s largest auto market. Nissan’s domestic production capacity far exceeds demand, with 2024 output forecasted at just over half of its capacity. The company reported a ¥200 billion operating loss for Q2 2025 and anticipates a ¥450 billion impact from U.S. tariffs in FY2026. While the EV sedan ‘N7’ performs well in China, intense price competition raises concerns about profitability. Nissan aims to improve factory utilization to nearly 100% by closing underperforming plants. Despite financial pressures and a declining stock price, Nissan has rejected merger talks with Honda, focusing instead on independent recovery efforts.
