Nissan to Cease Production of AD Compact Van Amid Honda's Restructuring Plans

Nissan Motor Co. has announced that it will discontinue the production of its AD compact van by November, as part of its strategy to reduce surplus manufacturing capacity. This decision comes as Honda Motor Co. is reportedly preparing to incorporate the struggling car manufacturer into its operations.

The production of the AD van, manufactured at Nissan Shatai's Shonan plant in Kanagawa, accounted for approximately 7,000 units of the 150,000 vehicles produced by the facility in the fiscal year 2023. The same plant also produces the NV200 compact van, which remains in production.

A spokesperson for Nissan stated that there have been no firm decisions regarding workforce reductions as a result of this production halt. This statement counters previous reports suggesting that several hundred jobs could be at risk with the end of AD van production.

Nissan holds a 50% stake in Nissan Shatai, which plays a critical role in the company's operational framework. The decision to cease production of the AD compact van is part of a broader effort to streamline operations in anticipation of significant changes in the automotive landscape, particularly as Honda maneuvers to stabilize its own business.

As the automotive industry continues to navigate challenges such as shifting consumer preferences and increasing pressures towards electrification, manufacturers are re-evaluating their product lines and production strategies. The end of the AD van's production reflects these ongoing adjustments in response to market demands.

Nissan's strategic move comes at a time when the company is also focusing on enhancing its core offerings and aligning its production capabilities with future growth opportunities. The decision is expected to contribute to a more efficient production process, ultimately benefiting the company as it prepares for the evolving automotive market.