On Friday, in a report Japanese news daily Yomiuri said, Nissan Motor plans on further cutting down its presence in the European car market; it plans on outsourcing the sales and manufacturing of its cars to Renault, its alliance partner.
The move, part of its global turnaround plan, essentially reverses former chairman, Carlos Ghosn’s strategy of rapid expansion.
Nissan plans on cutting its distribution channels in thirty countries, most of which are situated in Eastern Europe. It is also planning on closing down its Avila plant in Spain and convert it into a warehouse.
The turnaround plan sees Nissan moving its operations away from Europe and instead focuses on Japan, the United States and China. The carmaker is expected to post a record operating loss of $3.25 billion (340 billion yen) in this fiscal year ending on March 31, 2021, and is cutting production capacity and model numbers by a fifth; it also aims at slashing operating expenses by 300 billion yen over a span of three years.