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2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >
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AutoBeta(AutoBeta.net)05/05 Report--
Nissan is planning a new development plan to deal with the turmoil of the company in recent years and the problems left over from the arrest of former chairman Carlos Ghosn, Reuters reported, citing sources. Nissan has focused its resources on the United States, China and Japan, and the plan is likely to be officially launched on May 28.
This is not only a cost-saving plan, but also to rationalize the operation, redefine and focus on building the focus of the operation. This new strategy will solve the problem of over-expansion of Ghosn, the former CEO of Nissan. when Ghosn was in charge of Nissan, he adopted price-for-volume strategies such as substantial discounts in order to expand Nissan's sales and market, which damaged the value of the brand and made the Nissan brand cheap.
The new plan will focus resources on the US, China and Japan markets and related products and technologies, but will not withdraw completely from other markets and will maintain operations in Europe and Asia, but will streamline products, according to people familiar with the matter. In addition, Nissan will launch six new or redesigned models in the next three years. In the Chinese market, Nissan will reposition the Qichen brand to better cope with competition from local brands.
In July, Nissan will cut 12500 jobs and cut 10 per cent of its capacity and product lines at factories around the world, from the UK to Spain, Mexico, India and Indonesia. In March, Nissan announced its official withdrawal from the Indonesian market, mainly due to continued sluggish local sales demand. The company has two factories in Indonesia with an annual production capacity of about 250000 vehicles and mainly produces the low-end brand Datsan.
As far as Nissan's three major markets are concerned, the Chinese market is constantly picking up, while the situation in the United States and Japan is not optimistic. With continued low sales in the United States, the world's second-largest market, and the impact of the COVID-19 epidemic, Nissan may lose 85 billion to 95 billion yen (5.6 billion to 6.3 billion yuan) in fiscal year 2019, the first loss in 11 years.
In its home market, Nissan plans to limit production at its Japanese plants to 13400 vehicles in May, compared with 61000 in May last year. The cuts are planned to last until June, when Nissan production will fall to 33700 vehicles, down 43 per cent from the previously planned 59300.
Affected by the epidemic, Nissan's global car sales fell 13.2% to 4.7916 million in fiscal 2019 (April 2019-March 2020), the lowest in Nissan in nine years and less than 5 million for the first time in seven years. Based on the impact of the epidemic on the company's operations, Nissan expects an operating loss of up to 45 billion yen ($420 million) and a net loss of 95 billion yen for the fiscal year ending March 2021.
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