Nissan Motor Co. is planning to close seven factories worldwide, including two in Mexico and two in its home prefecture of Kanagawa, following a ¥670.9 billion ($4.5 billion) net loss in the fiscal year ended March.
The struggling automaker will also shutter facilities in South Africa, India, and Argentina as part of its most aggressive restructuring effort in decades. The factory closures will reduce Nissan’s production capacity by 1 million vehicles to 2.5 million, representing a nearly 30% cut in manufacturing footprint.
CEO Ivan Espinosa, who took command last month, is racing to stem losses that have accelerated dramatically over the past year. The company has suffered from weakening demand in key markets and increased competition from Chinese automakers. Nissan’s position has worsened since merger talks with Honda collapsed in February.
The cuts target facilities across multiple continents, with particular focus on scaling back operations in Mexico and Japan’s Kanagawa prefecture, where the company was founded. Industry analysts remain skeptical about whether these measures will be sufficient to address Nissan’s financial woes, with some suggesting more drastic action may be necessary.
The sweeping restructuring also includes plans to slash approximately 20,000 positions globally, as the automaker enters what its leadership has described as “emergency mode” in its fight for survival.
