Nissan Motor Reduces European Presence as A part of Turnaround Plan: Yomiuri
© Reuters. FILE PHOTO: The Nissan Motor Corp. logo. will be displayed in the company's showroom in Tokyo
TOKYO (Reuters) – Nissan (OTC 🙂 Motor plans to further reduce its presence in Europe and to outsource the sale and manufacture of its cars to an alliance partner Renault (PA :), reported the daily Yomiuri on Friday.
As part of its global turnaround plan, which reverses rapid expansion led by overthrown former chairman Carlos Ghosn, Nissan will cut its sales channels in 30 countries, mostly in Eastern Europe. There are also plans to close the plant in Avila, Spain and convert it into a warehouse, the report said.
The Japanese auto company is currently shifting its activities away from Europe and shifting its focus to China, the United States and Japan.
Expecting a record operating loss of 340 billion yen ($ 3.25 billion) through March 31, Nissan is reducing production capacity and model numbers by one-fifth, and aims to cut operating costs by 300 billion yen over three years.
The company's three-way alliance with Renault and Mitsubishi Motor was plunged into uncertainty in 2018 when Ghosn was arrested for financial misconduct, which he denies. He later fled Japan while being monitored by law enforcement and awaiting trial at his residence.
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