A factory town in crisis shows Japan's fading manufacturing era

Intensifying competition sparks painful period, especially for resident workforce

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TOKYO - Nissan Motor's Oppama factory, opened in 1961, was once a crown jewel in Japan's post-war rise to manufacturing powerhouse.

Today, it represents the dangers of being caught flat-footed in a rapidly changing industry.

The factory, about 48km south of Tokyo, is set to shut by March 2028 — part of Nissan's wide-ranging restructuring after a slump in sales sparked its worst financial crisis since Renault rescued the carmaker from near bankruptcy a quarter-century ago.

Once synonymous with cutting-edge technology, Japan's legacy brands are struggling to adapt to changing consumer tastes, ceding market share to the likes of Tesla and a wave of Chinese upstarts led by BYD.

That means whatever happens to Oppama — and the thousands of residents who depend on it — will serve as a warning for Japanese manufacturers as intensifying competition sparks a painful period of consolidation that could pave the way for rejuvenation.

It is also a new era for the Japanese economy, as a wave of bankruptcies among small- and medium-sized firms across industries from transport to technology challenges the idea of "shushin koyo", a job for life.

Like any factory town, Nissan's ties run deep. It directly employs almost 10 per cent of Oppama's 29,700 residents. Field trips to the plant are a rite of passage for local schoolchildren and the company revived its baseball team in 2025 after a 16-year hiatus, though it lost in the semi-finals to ultimate tournament winner Toshiba.

A victory would have provided a welcome distraction, said Mr Yuji Fujita, the third-generation owner of a fresh-produce store in the street that runs between Oppama's train station and the factory.