Nissan is suffering. The Japanese company announced poor results for its 2019 fiscal year. The manufacturer has accused its first operating loss in eleven years, of around 340 million euros. The presentation of these results was accompanied by the presentation of the new strategic plan, which looks like shock treatment.
It’s no surprise, the manufacturer had already mentioned savings measures in July 2019. But the brand has pushed the sliders. Last year, it planned to reduce its production capacity by 10% by 2023. It will ultimately be 20%. Current capacities are far above sales. Nissan wants the site usage rate to go back to 80%.
The manufacturer has formalized the closure of its factory in Barcelona (Spain), which currently assembles the Navara pickup. The site employs nearly 3,000 people. A factory in Indonesia will close to rationalize production in this region of Asia.
Nissan’s new strategic plan follows the evolution of the Alliance’s operations, where a better distribution of roles has finally been implemented with a leader / follower strategy. This particularly concerns geographic areas. Nissan will thus focus its efforts on North America, China and Japan. The automaker will leave South Korea. But the brand will not abandon Europe.
However, this is the region where there will be the strongest reorganization of activity. In addition to the closure of the Barcelona site, a cleaning in the range will be made. On the Old Continent, the brand will focus on SUVs and electrics. In the context of better complementarity with Renault, Nissan will thus stop the traditional city cars and compacts here.
In general, the number of models offered by Nissan worldwide will be reduced by 20%, from 69 to 55. 12 new products are promised within 18 months. The new X-Trail will be presented in June, the electric SUV Ariya in July. Worldwide, Nissan is targeting one million electrified vehicles sold per year by 2023. In Europe, there will be the launch of two simple hybrids, one plug-in hybrid and three electric.
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