Asger Risom
With billions in losses and a sweeping recovery strategy underway, Nissan is on the brink of shuttering historic manufacturing sites—
With billions in losses and a sweeping recovery strategy underway, Nissan is on the brink of shuttering historic manufacturing sites—including its first factory outside Japan. Here’s what the closures mean for the company’s future.
Nissan’s Cost-Cutting Plan Unveiled
Facing a $4.5 billion net loss, Nissan has launched a sweeping turnaround strategy—dubbed “Re:Nissan”—aimed at slashing costs, streamlining production, and reviving profitability after years of financial turmoil.
Seven Plants on the Chopping Block
As part of the recovery plan, Nissan will close seven plants worldwide, reducing its global manufacturing footprint by 30%. The move includes the closure of Japan’s Oppama Plant by 2028 and potentially two key facilities in Mexico.
A Historic Factory Faces Shutdown
Nissan’s Civac plant in Mexico, operational for nearly 60 years and the company’s first factory outside Japan, is reportedly set to close by March 2027. It currently builds models like the Navara and Latin America Frontier.
Infiniti Production Winds Down
Nissan is also expected to end its partnership with Mercedes-Benz, ceasing production of the Infiniti QX50 and QX55 by year-end. This will mark the end of joint operations at the COMPAS facility in Mexico.
20,000 Jobs on the Line
As part of the restructuring, Nissan plans to lay off roughly 20,000 workers. The majority of cuts will come through factory closures as the automaker seeks to align output with diminished demand.
Engineering and Supplier Cuts
In addition to plant shutdowns, Nissan is aiming to cut engineering costs by 20%. The company has also asked suppliers to accept IOUs in an effort to delay cash payments and preserve liquidity.
Full Utilization the Goal
A central goal of the “Re:Nissan” plan is to reach 100% utilization at its remaining factories. Nissan hopes consolidating operations will boost efficiency and reduce long-term overheads.
Could Honda Step In?
A reported move under consideration is using Nissan’s Mississippi plant to build Honda-branded trucks. This would help Honda dodge Trump-era import tariffs and increase Nissan’s plant usage, though no official deal has been confirmed.
A Make-or-Break Moment
If successful, the drastic measures could save Nissan $3.4 billion. But the company’s future hinges on whether it can execute this bold transformation while preserving its identity and manufacturing legacy.
