Nissan is closing its flagship factory in Oppama, Japan, as the carmaker looks to cut costs and consolidate its manufacturing facilities.

According to a July 15 release, Nissan is planning to end vehicle production at its Oppama plant in March 2028. The facility's 2,400 workers will remain in their current roles until then, with the company vowing to maintain communication with employees in the months to come, and to consult with the plant's labor union to offer transfers to other locations.

"Today, Nissan made a tough but necessary decision," said Nissan CEO Ivan Espinosa. "It wasn’t easy — for me or for the company — but I believe it’s a vital step toward overcoming our current challenges and building a sustainable future."

Espinosa was appointed as CEO in April following months of financial turmoil, which included a November announcement that Nissan would be cutting 9,000 jobs in response to weak sales in the U.S. and China, a planned merger with Honda that fell apart in February, and Trump administration tariffs on foreign cars and auto parts that have effectively crippled the company. In May, Japan's national broadcaster NHK also reported that Nissan would be eliminating 11,000 more jobs than previously planned, bringing the total cuts to around 20% of its workforce.