Nissan Shocked To Shut Down 2 Major Factories In Japan..Foxconn Acquisition Visible
Jul 17, 2025
|
According to Japanese media, Nissan will end production at its Clothing Pharma plant in Yokosuka, Kanagawa Prefecture, in March 2028. Nissan Motor Company's Shonan plant in Hiratsuka, Kanagawa Prefecture, which assembles the body as a subsidiary, will also close by March 2027.
It is the first time Nissan has reduced its production capacity at a Japanese plant since it closed its plant in Musashimurayama, Tokyo, in 2001. Nissan said it would decide later on how to use the Clothes Pharma plant and that there would be no further production cuts in Japan.
The Clothes Pharma plant, which began operations in 1961, is Nissan's first factory specializing in passenger cars. The annual production capacity is 240,000 units, but it produced about 100,000 units last year, so the utilization rate was only 40%. Usually, if the utilization rate falls below 80%, it will make a deficit.
Nissan recorded a record deficit of 670.8 billion yen (about 6.27 trillion won) in the 2024 fiscal year (April 2024 to March 2025). Since then, Nissan plans to reduce 17 factories worldwide to 10 and cut 20,000 employees, or 15% of its total employees, by March 2028 to improve its performance.
Taiwan Foxconn (Honghai Precision Industry) is reportedly considering acquiring the Nissan Opama plant, which has suffered from poor performance.Foxconn entered the electric vehicle business from 2023 after its rapid growth by specializing in Apple smartphones.
According to Kyodo News, if the collaboration between Foxconn and Nissan becomes a reality, Foxconn will be able to expand its electric vehicle business by setting up an electric vehicle production base in Japan. However, Kyoto News Agency explained that it is unclear whether Foxconn will actually take over because it has to establish its own supply chain for parts.
Earlier, Japanese media reported that Nissan has begun negotiations with Foxconn for electric vehicle cooperation and is discussing ways to use the Clothes Pharma plant. Foxconn has reportedly been seeking to secure a manufacturing base in Japan for its electric vehicle business.
Editor Kim Tae-jin, tj.kim@carguy.kr
This article was translated by Naver AI translator.
