Nissan to Downsize Yokohama Plant as Japanese Automakers Face Sharp Profit Decline

Nissan Motor plans to downsize its Yokohama plant as part of its broader restructuring strategy—marking the first time the company will reorganize a parts manufacturing facility in Japan. The plant has been targeted for adjustment due to low utilization rates and aging infrastructure, with the actual downsizing expected to begin after 2028. Nissan still intends to retain the site, as it is responsible for pilot production and development of next-generation all-solid-state batteries for electric vehicles. Previously, Nissan announced a global capacity optimization plan, deciding to halt production at seven vehicle assembly plants to eliminate inefficient capacity and reduce operating costs. Meanwhile, Japan’s seven major automakers—including Toyota, Honda, and Nissan—are projected to post combined net profits of ¥3.9 trillion in fiscal year 2026, a decline of approximately 48% from ¥7.54 trillion in fiscal year 2023.