Nissan can cut production by 15% already this fiscal year

Nissan can cut production by 15% already this fiscal year

April 23, 2019 0 By autotimesnews

This was written by the Japanese newspaper Nikkei, citing its own sources.

Nissan Motor will reduce its global production by 15% in the current fiscal year, which ends March 31, 2020, the Japanese Nikkei said, citing its own sources. According to Nissan’s plans (which were revealed by component suppliers), this year the company plans to assemble about 4.6 million vehicles, the lowest in 9 years. As the newspaper notes, this may adversely affect the company’s financial performance and undermine its alliance with the French automaker Renault.

In February, CEO Hiroto Saikawa announced a change in the strategy followed by Carlos Ghosn, focusing on profitability at the expense of volumes. According to Nikkei, the production of Nissan cars in Japan will remain at a level of just over 900 thousand units, while foreign production will be reduced by 20%, to about 3.7 million cars.

However, after a while Nissan denied the Nikkei information, saying that this information is “completely wrong,” Reuters reports. In a brief statement, Nissan says that the company will present its production plan for 2019-2020 on May 14, when it will announce financial results for the previous year. Previously, the manufacturer stated that the Nikkei article is not based on official information, and the company does not comment on speculation.

Another disturbing news came from abroad. About possible plans to end the partnership with the alliance Renault-Nissan said the leadership of Daimler. The details of the breakdown of relations are unclear, but market analysts suggest that it is enough not to renew current contracts. The most significant joint projects of the companies are the models Mercedes-Benz X-Class and Nissan Navara, as well as Smart For Four and Renault Twingo, which have a lot in common. Mercedes also makes a joint release of its models with the Infiniti brand at a factory in Aguascalientes (Mexico).