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May 29, 2020

Nissan to withdraw from South Korea by end of 2020

Nissan Motor said it plans to withdraw from the South Korea market by the end of the year due to falling sales, as part of a broader global restructuring plan which is expected to result in some 20,000 job losses worldwide.

By bcusack

Nissan Motor said it plans to withdraw from the South Korea market by the end of the year due to falling sales, as part of a broader global restructuring plan which is expected to result in some 20,000 job losses worldwide.

The Japanese automaker reported a JPY671.2bn loss (US$6.2bn) in the last fiscal year ending in March 2020, with sales falling by 15% to JPY9,900bn.

Nissan said it will withdraw the Nissan and the luxury Infiniti brand from South Korea after combined sales of the two brands there fell by 55% to 972 units in the first four months of 2020. By contrast, overall sales of imported light passenger vehicles increased by over 10% to 77,614 units while domestic manufacturers reported a decline of just 3.4% to 477,540 units.

Local reports suggest Nissan decision to withdraw from the South Korea market also reflects lingering anti-Japan sentiment, which flared up last July following a dispute over trade, resulting in an unofficial boycott of Japanese goods in the country.

The company said it will continue to offer after-sales services for South Korean owners of Nissan and Infiniti models for the next eight years, until 2028.

A Nissan spokesperson told reporters “the company has reached a conclusion that it is hard to regain a sustainable growth structure in South Korea due to worsening business environments at home and abroad despite its efforts to keep operations here”.

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