Nissan closing US and Brazil design studios, reducing operations in London and Japan

Nissan begins a major overhaul

Nissan is making bold moves to reshape its future. Nissan will shut its California and São Paulo design studios as part of a consolidation to five hubs by the end of fiscal 2025 (March 31, 2026).

The company says these changes are part of its “Re: Nissan” plan, designed to simplify operations and cut costs. This plan aims to help the Japanese automaker recover from steep financial losses and stay competitive against rivals in electric vehicles and mobility innovation.

Shutting down San Diego studio

Nissan confirmed it will close its long-running design studio in San Diego, California. The center, known as Nissan Design America, has been responsible for shaping many U.S. models.

By March 2026, design work from San Diego will shift to other global hubs. The Los Angeles “Studio Six” location will take over as the primary U.S. design base, keeping Nissan’s creative presence in America alive.

Brazil studio also closing

Nissan will also close its design operations in São Paulo, Brazil. This move is part of a broader restructuring aimed at streamlining global design efforts.

Shutting down the Brazil studio means the automaker will now rely more heavily on hubs in Los Angeles, London, Shanghai, Tokyo, and Atsugi, Japan. These five locations will carry the company’s creative future forward.

London office scales back

Nissan Design Europe in London is not closing but will be downsized. The office will continue to support projects for Africa, the Middle East, India, Europe, and Oceania.

This design center works closely with Renault, Nissan’s global partner. Even with fewer resources, it remains strategically important for styling cars tailored to diverse regions.

Two hubs in Japan

Japan remains home to two of Nissan’s most important design locations. The Global Design Center in Atsugi will serve as the central hub for vehicle styling worldwide, leading the creative direction across all major markets.

In addition, Tokyo’s Creative Box Studio will continue operating as part of the company’s streamlined strategy. These two Japanese sites will carry greater responsibilities as Nissan reshapes its structure to sharpen innovation and prepare for the future.

Shanghai hub remains strong

Nissan’s design studio in Shanghai will not be impacted by the current round of restructuring. This center is seen as critical because China is the world’s largest and one of the most competitive automotive markets.

By keeping the Shanghai hub intact, Nissan stays closer to trends shaping the fast-growing electric vehicle sector. This decision ensures the automaker can respond quickly to rivals and customer demand in the region.

Focus on five creative hubs

Once restructuring is complete, Nissan will rely on five major design hubs worldwide. These hubs will be based in Los Angeles, London, Shanghai, Tokyo, and Atsugi, covering all key global markets.

According to Mainichi, Alfonso Albaisa, Nissan’s global design chief, explained that the strategy is meant to “focus on upstream innovation and future mobility.” He added that the new structure will make Nissan more agile and adaptable in today’s dynamic auto industry.

Massive financial losses

Nissan’s restructuring follows years of financial strain that worsened in fiscal 2024. According to Marketscreener, the automaker reported a net loss of JPY 670.9 billion, or roughly $4.6 billion.

The weak performance was tied to poor sales in the United States and China. Because of ongoing uncertainties about tariffs, Nissan has also held back from issuing a profit forecast for fiscal 2025–26.

Investors show concern

The company’s ongoing struggles have left investors worried about Nissan’s future. Nissan’s board forewent the FY2025 year-end dividend, citing the expected full-year net loss and cash-preservation needs.

Nissan also suspended dividend payouts, which angered many shareholders. For a company once regarded as a pillar of Japan’s auto industry, these financial setbacks have created more pressure to turn its business around.

Cutting production capacity

Nissan is also taking bold steps to reduce its manufacturing footprint. As part of its turnaround plan, the automaker will cut production capacity from 3.5 million vehicles to 2.5 million by fiscal 2027.

According to Reuters, Nissan will also scale back its global factory count. This includes reducing the number of plants from 17 to 10, with closures such as the historic Oppama facility near Tokyo.

Thousands of jobs affected

Nissan’s restructuring is expected to have a major impact on its workforce. Reports indicate the company plans to gradually reduce about 20,000 jobs worldwide by fiscal 2027 as part of its cost-cutting drive.

While Nissan has not released exact figures linked to studio closures, the downsizing of factories and design centers suggests many employees across different regions will feel the effects. The global scale makes this a significant change.

Cost-cutting extends further

Nissan’s financial struggles have pushed it to explore dramatic savings beyond plant closures. According to CarBuzz, one idea under consideration was selling its global headquarters in Yokohama, then leasing it back to maintain operations.

Such drastic steps show how far Nissan is willing to go to preserve cash. The company views these moves as necessary to rebuild profitability and restore stability after years of steep losses.

Cancelled Nismo Festival

Fans of Nissan’s performance cars received disappointing news recently. Nissan and NMC canceled the 2025 NISMO Festival following a reevaluation of content and operations; the company says the event will return in the future, date TBD.

Nissan explained that the decision followed a reevaluation of the festival’s content and operations. While the company says the event will return in the future, no specific date has been confirmed, leaving enthusiasts waiting.

Pressure from EV rivals

Nissan once gained recognition as a leader in electric vehicles with the Leaf. Competitors in the United States, Europe, and especially China are advancing rapidly.

The company believes that consolidating its design operations into five hubs will help accelerate EV development. Nissan hopes this streamlined structure will keep it competitive in the global race for next-generation mobility.

CEO Ivan Espinosa’s challenge

The task of leading Nissan’s recovery now rests with Ivan Espinosa, who became CEO in April 2025. His leadership comes at a time when the automaker faces steep losses and rising pressure from global rivals.

In May, Espinosa introduced the “Re: Nissan” strategy. The plan includes cutting production capacity, closing factories, and sharpening focus on profitability to guide the company toward a sustainable future.

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Talks with Honda

For years, speculation about a possible Nissan-Honda partnership has circulated. In early 2025, Nissan confirmed it was in discussions with Honda about collaboration in the U.S. market to navigate tariffs and competition.

Nissan CEO Ivan Espinosa said Honda was “one of the candidates” under review. But as time has passed, talks have gone quiet, leaving doubts about whether a formal partnership will ever materialize.

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Enjoyed this story? Share your thoughts in the comments and let us know what you think about Nissan’s future.

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