Nissan Cuts Models, Closes Plants. Nissan Motor Co. has reported a $6.2-billion loss in its most recent fiscal year, prompting the company to reduce the number of models it makes, shut down plants in Spain and Indonesia, and make fewer vehicles in the U.S.
In April, Nissan’s sales were 42 percent below April 2019’s.
Now Nissan is seeking to cut $3 billion in annual costs as it seeks to deal with negative cash flow through 2021, according to company forecasts.
The company had built plants able to turn out seven million vehicles annually but has seen sales stall at about five million. The plant in Spain was designed to produce 100,000 vans a year, but the company has averaged annual sales of only about 15,000 vans across Europe.
“We must admit our mistake and correct course,” said Makoto Uchita, Nissan’s CEO.
Nissan will focus its business on the U.S., Japan, and China while Renault, its biggest shareholder, leads the company’s efforts in Europe. Nissan will abandon Southeast Asia to Mitsubishi Motors, another of its partners.
TRENDPOST: If car makers are unable to prevent defects in the mechanical systems they have been using for years, they will be even less able to convince drivers that automated cars are safe. Self-driving vehicles have been overhyped for years and will not capture a major share of the auto market until at least 2030.
