A month ago, Nissan Motor announced it would cease automobile production at its Oppama factory in Japan by the end of fiscal year 2027, transferring operations to its Kyushu plant in Fukuoka Prefecture in southern Japan.

This industrial landmark, built in 1961, was once a jewel of Japan's post-war manufacturing renaissance. Today, it symbolizes the multiple crises triggered by being caught unprepared in a rapidly transforming industry. The fate of this facility not only affects the livelihoods of 2,400 direct employees but also reflects the collective difficulties facing Japanese manufacturing in the new energy transition wave.

According to reports on the 18th, as part of Nissan's global restructuring plan to reduce capacity, the Oppama factory will close in March 2028. Located in the port city of Yokosuka south of Tokyo, the facility spans 1.7 million square meters and employs nearly 10% of the local population of 29,700 residents. The factory closure will impact thousands of local residents who depend on it for their livelihood.

Yuji Fujita, a third-generation owner of a fresh food store located on the commercial street between Oppama Station and the factory, has purchased about 24 Nissan vehicles over the years. The impact of the Oppama factory closure reminds him of the 1995 closure of Nissan's Zama factory, which was a major export hub to North America.

"This is the worst-case scenario. We have no idea what the future holds now," Fujita said.

Local residents share similar sentiments. It remains unclear how many of the 2,400 Oppama factory employees will be transferred to the Kyushu plant or when they will begin their new positions. The future of the factory site also remains undecided, with residents speculating it might be converted into a resort destination or theme park.

In early July, reports indicated that Nissan was in negotiations to allow Taiwan's Foxconn to use the Oppama factory for electric vehicle production to avoid closure.

Yokosuka's mayor stated that during his meeting with Nissan CEO Ivan Espinosa last month, he advocated that the site should continue providing employment opportunities for residents. In an email statement, he wrote that when planning the site's future, "we urge him to consider job creation and regional development revitalization as much as possible."

The Nissan workers' union also expressed that "the current priority is determining what options are available for existing employees." However, Espinosa stated he would not consider contract manufacturing.

On July 15, 2025, Espinosa announced the company would cease automobile production at its Oppama factory by the end of fiscal year 2027.

Narao, head of the Oppama administrative center, noted that while the news of the factory closure surprised some people, residents had long sensed that Nissan was on a downward trajectory.

In 2007, when the Oppama factory celebrated producing its 15 millionth vehicle, it was still manufacturing seven different models. In 2010, the launch of the world's first mass-produced electric vehicle, the Nissan Leaf, brought new vitality to the area. However, starting in 2013, Leaf production began shifting to the United States and United Kingdom. Today, the Oppama factory produces only two models: the Note for the domestic market and its premium version, the Aura.

This traditional Japanese brand, once synonymous with cutting-edge technology, is now struggling to adapt to changing consumer preferences, with market share continuously being captured by Tesla Motors and Chinese automakers led by BYD.

Tesla Motors products have replaced the Leaf as the best-selling electric vehicle. Chinese automakers have risen to become industry giants, launching vehicles with stylish designs, advanced technology, and diverse pricing options.

The closure of the Oppama factory serves as a wake-up call for all Japanese manufacturers. This represents a new era for Japan's economy: from transportation to technology, small and medium enterprises across industries are experiencing a wave of bankruptcies, challenging the concept of "lifetime employment."

The vast network of small specialized parts suppliers has been the first to bear the brunt of the automotive industry's impact. Data shows that in the fiscal year ending in March, 32 related companies went bankrupt, the highest number in a decade.

Data analyst Satoru Shizuka believes that as companies focusing on electric vehicles, autonomous driving, and efficient engines flourish, the industry may see more consolidation in the future. "Companies without technology or capital will struggle. This is the law of 'survival of the fittest.'"

Currently, the Leaf is undergoing a redesign to boost sales. While the lack of hit models is at the core of Nissan's predicament, Espinosa stated that after the Oppama factory closure, Nissan has no plans for further capacity consolidation in Japan.

In mid-May this year, Nissan Motor launched a recovery plan called "Re:Nissan," reducing global factories from 17 to 10, cutting annual production capacity from 3.5 million to 2.5 million vehicles, and laying off 20,000 employees. Through this revival plan, Nissan hopes to save a total of 500 billion yen in costs based on fiscal year 2024 and return to profitability in fiscal year 2026.

Nissan CFO Jeremie Papin stated that Nissan may face 160 billion yen in asset impairments and restructuring costs this fiscal year.

Notably, U.S. automotive tariffs increased significantly from 2.5% to 27.5% starting in April. Affected by tariff policies, Japanese exports to the U.S. have declined year-on-year for three consecutive months, with the decline showing signs of expansion.

Data shows that Japan's automotive export value to the U.S. has dropped sharply, with June exports declining 26.7% year-on-year. The Kyushu region experienced the largest export decline, with export volume down 67.8% year-on-year and export value down 76.3% year-on-year.