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April 23, 2019

Nissan denies Japanese global production cut report

Nissan Motor has denied a Japanese media report it would reduce global output this financial year.

By Olly Wehring

Nissan Motor has denied a Japanese media report it would reduce global output this financial year.

The automaker said:" The Nikkei Shimbun published a story speculating Nissan had reduced its global production estimate for the current fiscal year by 15% versus the previous fiscal year.

"The details reported in this story are completely incorrect, and Nissan has voiced its strong objection to the Nikkei.

"Nissan's production plan for the current fiscal year will be disclosed on 14 May when the company announces its financial results for the previous fiscal year."

In a story headlined "Automaker breaks with Ghosn in shifting focus from sales volume to profits", the Nikkei said Nissan would cut global production by about 15% over the next 12 months, compared to what it forecast for the fiscal year ending 31 March 2019.

The Japanese business daily said the automaker planned to build about 4.6m units this fiscal year ending 31 March 2020, its lowest output in nine years.

The paper cited plans being "communicated" to Nissan suppliers.

Nissan predicted last February it would make roughly 5.45m cars in fiscal 2018 but final production numbers had not yet been released, the Nikkei said.

The move was expected to affect profits and could cast a pall over the alliance with Renault, the report said.

It added that, under Ghosn, Nissan stretched itself thin in order to meet aggressive sales targets but president and CEO Hiroto Saikawa last February had announced a new strategy focused on profit over sales volume and also pledged to overhaul the company's production and sales structures.

The Nikkei  said it had "learned from multiple suppliers" Nissan told them it plans to produce about 4.6m vehicles in fiscal 2019.

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