Nissan Motor Co. has announced plans to scale back operations at its subsidiary’s Shonan Plant in Hiratsuka, Kanagawa Prefecture, as part of broader domestic restructuring efforts. The move is expected to lead to the loss of hundreds of jobs and marks the first detailed restructuring initiative within Japan following the company’s global downsizing announcement last year.

Production Changes at Shonan Plant

The Shonan Plant, operated by Nissan’s subsidiary Nissan Shatai Co., focuses on manufacturing commercial vehicles such as the AD van and NV200 Vanette. Key updates include:

• Cessation of AD Van Production: Nissan plans to halt production of the AD van by November, citing declining sales and intensified competition from Toyota.
• Review of NV200 Vanette Production: The automaker is also considering scaling down production of the NV200 Vanette as part of its restructuring strategy.
• Impact on Plant Capacity: The Shonan Plant has an annual production capacity of 150,000 units, but the downsizing measures are expected to significantly reduce this figure.

Global and Domestic Restructuring Plans

Nissan’s restructuring aligns with its 2023 announcement to cut 9,000 jobs worldwide, including:

• 3,000 Jobs in Production: These cuts will impact facilities globally, including the Shonan Plant.
• 6,000 Non-Production Roles: Clerical and administrative positions are also being reduced to improve efficiency amid declining performance.
  In Japan, further restructuring may include streamlining operations at Nissan’s headquarters.

Implications for Merger with Honda

The restructuring efforts are crucial as Nissan pursues a potential merger with Honda Motor Co. Discussions began in December, with Honda President Toshihiro Mibe emphasising that Nissan’s successful implementation of a restructuring plan is a prerequisite for the merger. This has prompted Nissan to accelerate its domestic restructuring measures.

Challenges Ahead

The decision to downsize the Shonan Plant reflects Nissan’s broader struggles in the competitive automotive market, particularly in the commercial vehicle segment, where its AD van has faced declining demand against Toyota’s rival offerings.

Nissan’s efforts to streamline its operations will be closely watched as the company aims to stabilise its domestic and global performance while navigating the complexities of a potential merger with Honda.