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22 July
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World

Nissan Motor will cut global production

The planned production cut would be the steepest since fiscal 2008

Photo: Reuters

/NOVOSTIVL/ Nissan Motor will cut global production by about 15% for the fiscal year ending March 2020, Nikkei has learned, as the Japanese automaker shifts away from the aggressive expansion campaign promoted by former Chairman Carlos Ghosn. This article appeared in Nikkei.

The company aims to produce about 4.6 million units in fiscal 2019 — the lowest figure in nine years — according to plans being communicated to its suppliers. The move is expected to affect earnings, and could cast a pall over its alliance with French automaker Renault.

Nissan appears to have sustained sales and output declines in fiscal 2018 after almost a decade of growth, due to a sluggish performance in the U.S. The figures are expected to fall further this fiscal year, even as many of Nissan's rivals anticipate growth or at least in line with 2018, making Nissan's drop stand out.

The planned production cut would be the steepest since fiscal 2008, when output fell 16% in response to the global financial crisis. By region, the automaker plans to keep production in Japan largely flat at over 900,000 units, while slashing it overseas by 20% to about 3.7 million vehicles.

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