Nissan Motor will end vehicle manufacturing at its plant in Indonesia in order to 'rightsize' and move toward improved profitability, the chief of its operations in the country said on Wednesday (18 March).

"Nissan has made the decision to end vehicle manufacturing at the Nissan plant in Indonesia," Isao Sekiguchi, president of PT Nissan Motor Indonesia said in an emailed statement cited by Singapore's The Business Times today.

"The end of vehicle production is part of an optimisation plan that includes rightsizing, production optimisation and reorganising of business operations."

The business paper note Nissan Motor CEO Makoto Uchida had warned deeper costs would probably be necessary to turn around the automaker which has been in turmoil since the 2018 arrest of Carlos Ghosn, its former chairman.

Profits are at decade lows and more than 12,500 jobs are to be cut. A plan to revamp the business is due in May, and the future of the Indonesia operations had long been in question.

Kyodo News reported earlier on the exit without identifying sources.

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By GlobalData

The Business Times noted, last month, Nissan reduced its full year operating profit forecast to JPY85bn from an earlier estimate of JPY150bn as the carmaker faced falling sales in the US, Japan, Asia and Europe.