Nissan Motor Co.'s historic Oppama plant in Yokosuka, once a symbol of Japan's post-war industrial resurgence, now stands at the crossroads of the automaker's extensive global restructuring plan, Reuters reports. Opened in 1961 on a former Japanese naval airfield, the facility was instrumental in transitioning Yokosuka's economy from military to civilian production, manufacturing iconic models like the Bluebird and, more recently, the Leaf electric vehicle (EV).

However, facing declining sales, mounting debt, and an ageing vehicle lineup, Nissan's new CEO, Ivan Espinosa, has announced a comprehensive overhaul aimed at revitalizing the company's fortunes. The plan includes reducing the global workforce by approximately 20,000 positions the report continues, and closing up to seven factories worldwide, with the Oppama plant, employing around 3,900 workers, under review for potential shutdown. Similar moves were seen in the late 90s when mass layoffs occurred in European plants – most notably in the UK at the time.

The potential closure of Oppama would not only impact on its employees but also reverberate through the local economy, affecting businesses and service providers dependent on the plant's operations. This move underscores the broader challenges facing Japan's automotive industry as it grapples with rapid technological shifts and intensified global competition, particularly in the EV sector dominated by companies like Tesla and emerging Chinese manufacturers.

Nissan's restructuring comes in the wake of a projected record net loss of up to JPY750bn (approximately $5.26bn) for the fiscal year ended March 2025, driven by impairment charges and restructuring costs. The company is also exploring asset sales, including a potential sale and leaseback of its Yokohama headquarters, valued at over JPY100bn ($700mn), to bolster its financial position.