Nissan Motor mulls downsizing global output by around 20%: Kyodo

15, May. 2020

Photo by Noah Grezlak on Unsplash
Photo by Noah Grezlak on Unsplash

TOKYO, NNA – Nissan Motor Co., one of three major Japanese carmakers, is considering slashing its global output capacity by 20 percent toward fiscal 2022, Kyodo News reported.

The move clearly illustrates a shift from the global expansion strategy initiated by the ousted former chairman Carlos Ghosn. Its current global annual production capacity stands at around seven million units.

The Yokohama-based company approved the downsizing plan at a board meeting on Thursday, the report said, citing sources. It will announce a mid-term management plan, including this, alongside earnings for the business year through March 31, on May 28.

Nissan Motor is suffering a slump in sales in the United States, its major market, amid the global Covid-19 pandemic, which is also weighing on the automaker’s vehicle sales in other parts of the world, according to the report.

The company said on April 28 that it would incur a group net loss of 85 billion to 95 billion yen ($79 million to $88 million) in the year, down from the previous outlook of 65 billion yen in net profit.