Nissan Motor Co. announced on July 14, 2025, plans to temporarily halt production at its Kyushu plant in southern Japan, effective August 1, due to declining demand and supply chain disruptions.
The facility, which produces models like the X-Trail and Rogue, will suspend operations for two weeks, affecting 6,000 workers and reducing output by 10,000 vehicles. The decision follows a 15% drop in global sales in the first half of 2025, driven by competition from Tesla and BYD, and delays in semiconductor deliveries exacerbated by U.S.-China trade tensions.
Nissan, which employs 34,000 in Japan, cited a strategic review to optimize costs amid a projected $200 million quarterly loss. The company plans to retool the plant for electric vehicle production, aligning with Japan’s 2035 carbon-neutral goal, but unions have raised concerns over job security, demanding retraining programs.
Local suppliers face a $50 million revenue hit, prompting government talks on subsidies. Analysts see this as part of a broader automotive industry shakeup, with Nissan’s stock dipping 3% on the Tokyo exchange, reflecting investor uncertainty.