Nissan plans to further reduce its presence in Europe as it continues to refocus on larger, more profitable markets, according to reports in Japan.
The reports suggest the struggling Japanese automaker will cut its distribution operations in thirty countries worldwide, most of which located in Eastern Europe, and will outsource these operations as well as some manufacturing operations to its global alliance partner Renault. The company's Avila plant in Spain will also cease manufacturing and will instead be converted it into a warehouse.
These measures are seen as a continuation of the management's strategy of returning the automaker to profitability and reversing the rapid expansion overseen by former chairman Carlos Ghosn. This includes plans to cut global capacity and models by 20% and slash annual operating costs by JPY300m over the next three years.
The company expects to post a record operating loss of JPY340bn (US$3.25bn) in the current fiscal year, ending on 31st July 2020.