Nissan is considering plans to shut two car assembly plants in Japan and overseas factories, including in Mexico, sources said on Saturday, as part of a cost-cutting plan the company flagged earlier this week.
The automaker is mulling closing Japan’s Oppama plant, where Nissan started production in 1961, and the Shonan plant operated by Nissan Shatai, in which Nissan is a 50 percent stakeholder, the sources said, which would leave it with just three vehicle assembly plants in Japan.
Overseas, Nissan is considering ending production at plants in South Africa, India and Argentina, and cutting the number of factories in Mexico, one of the sources said.
Japan’s third-biggest automaker unveiled sweeping new cost cuts on Tuesday, saying it would reduce its workforce by around 15 percent and cut production plants to 10 from 17 globally as it seeks to push through a turnaround.
The Yomiuri newspaper, which first reported the automakers’ possible closing of plants in Japan and overseas, said two factories in Mexico are under consideration.
Nissan said in a statement on its website that reports on the potential closure of certain plants were speculative and not based on any official information of the company.
“At this time, we will not be providing further comments on this matter,” Nissan said in the statement. “We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary.”
