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Nissan Motor’s Revival Plan Will See It Reducing Presence In Europe: Reports


01/04/2021


Nissan Motor’s Revival Plan Will See It Reducing Presence In Europe: Reports
Faced with a huge pressure from investors to stage a turn around of its business, the Japanese auto manufacturer Nissan Motors has decided to significantly reduce its presence further in the European market. The Japanese auto maker has also decided to outsource the sales and manufacturing of its cars in the continent to its alliance partner and French auto giant Renault, said a report published in the daily Yomiuri newspaper during the week end.
 
This is being viewed as a part of the global turn around plan of the company. The company intends to pull back and scale back the process of a rapid global expansion that was envisioned and implemented under the former chairman of the company Carlos Ghosn. As a part of its turn around strategy, Nissan plans to scale down and reduce the extent of its global distribution channels - primarily in at least thirty countries.
 
That would primarily include countries in East Europe where the company has not been able to reap as large benefits it had expected and to stop bleeding of cash for maintaining operations.  The newspaper report also claimed that the Japanese auto market is also planning to shut down its manufacturing unit in Avila in Spain and convert that facility into a warehouse.
 
However there was no mention of any details in the report about the scope and scale of the outsourcing of its sales and manufacturing of its cars in Europe to its alliance partner Renault.
 
There were no comments on the plans from Nissan in the newspaper report.
 
According to precious reports on the revival plans drawn up by the Japanese motor company, it is currently in the phase of slowly shifting most of its operations from Europe and instead is focusing on the more lucrative markets of Chins, the United States, and its home market of Japan.
 
In its latest forecast for the entire of its current financial year which ends on March 31, 2021, Nissan is expecting to report a record operating loss of about 340 billion yen or $3.25 billion. In order to stage a recovery from this low, the company is already implementing a strategy to cut down on its global production capacity as well as on the number of models by a 25 per cent while setting a target of cutting down its operating expenses by 300 billion yen over a period of three years.
 
Nissan is part of the three company alliance with Renault and Mitsubishi Motor. That alliance was pushed in a crisis and an uncertain future after the arrest in Tokyo, Japan of Carlos Ghosn – the architect of the alliance and the former heads of the three companies, in November of 2018. Ghosn was arrested on charges of financial misconduct. Those charges have been denied by Ghosn, who is currently in Lebanon after he jumped bail and escaped from Japan even while being monitored by law enforcement and awaiting trial at his residence.
 
(Source:www.livemint.com)