Underperformance leads Nissan to cease operations at Wuhan facility

​Nissan Motor Co. is preparing to cease vehicle production at its Wuhan plant in China by March 31, 2026, amid underperformance and intensified local competition. The facility, which began operations in 2022, has been producing the Ariya electric vehicle and the X-Trail SUV. However, it has been operating at less than 10% of its 300,000-vehicle annual capacity, manufacturing only about 10,000 units per year. ​

This move aligns with Nissan’s broader restructuring efforts, as the company recently forecasted a record net loss of 700 billion to 750 billion yen ($4.91 billion to $5.26 billion) for the fiscal year ending March 2025. The loss is attributed to significant impairment charges and restructuring costs across various regions, including North America, Latin America, Europe, and Japan. ​

The Wuhan plant’s closure reflects Nissan’s strategic shift to streamline operations and focus on markets with higher growth potential. The company aims to enhance its competitiveness by accelerating vehicle development and introducing new models, such as its first plug-in hybrid and a third-generation Leaf EV. ​
Reuters

Despite the challenges, Nissan maintains a strong financial position, with net cash of about 1.5 trillion yen ($10.5 billion) and total liquidity of 3.4 trillion yen ($24 billion). The company plans to release its full fiscal year results on May 13, 2025.​

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