Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive: Nissan sees bigger role for U.S., China markets in global car sales - sources

Stock MarketsMay 15, 2020 08:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Nissan logo is pictured at Brussels Motor Show

By Naomi Tajitsu and Maki Shiraki

TOKYO (Reuters) - Nissan (OTC:NSANY) Motor Co expects equal contributions to global car sales from China, the United States and elsewhere in coming years as the struggling Japanese carmaker strategises to recover profitability, two people with knowledge of the issue said.

Nissan aims to grow contributions from its biggest markets, China and the United States, to about a third each from just over a quarter now, while the share of other regions, including Brazil, Europe, Japan and Russia, will ease slightly to a third, from about 45% in total now, the sources said.

The comments offer the first glimpse of how the automaker's global sales breakdown could look in its recovery strategy, set to be unveiled on May 28.

Under the plan, Nissan will aim to bolster cooperation with partners Renault SA (OTC:RNLSY) and Mitsubishi Motors (OTC:MMTOF) Corp to reverse losses and spruce up a brand dented from years of chasing market share.

The steps will focus on salvaging profitability in the United States and "stopping the bleeding" in Europe, said one of the sources, who spoke to Reuters on condition of anonymity, as they were not authorised to speak with media.

"Eventually we see roughly one-third (of sales) in the United States, one-third in China, and one-third in other regions," the source added.

"There are many newer markets we can continue to grow, like Brazil, Russia and south Asia," he said, adding, "If we work well with our partners we can achieve volume growth and profitability."

Nissan declined immediate comment on its future sales outlook.

In April, Reuters reported that Nissan's latest recovery plan was likely to assume its annual sales target would hover around 5 million units, down from 6 million in the previous recovery plan announced in July.

Nissan's global sales plunged to a 9-year low of 4.8 million units in the year ended March, when the coronavirus worsened its slump in sales.

Sources have told Reuters a downsizing plan envisions closing at least 14 assembly lines through 2021, leaving annual production capacity of about 5.5 million units.

An expected annual operating loss of around 45 billion yen in the year ended March is cranking up pressure on the company to scale back an aggressive expansion plan pursued by ousted leader Carlos Ghosn.

A key pillar of Nissan's "operational performance plan" will be to consolidate production, procurement and development with Renault (PA:RENA) in Europe, the French automaker's home market, and Mitsubishi Motors in southeast Asia, where the smaller Japanese automaker has a stronger presence.

Nissan plans to reduce its manufacturing presence in Europe and is considering closing its plant in the Spanish city of Barcelona, sources have told Reuters, with one saying it was also assessing the prospect of Renault building cars at Nissan's massive plant in Sunderland, England.

"My view is that we will be left with more integration of Sunderland into the general European industrial scheme," the person said, while acknowledging such moves would hinge on Brexit trade pacts.

Nissan's May plan will not include consideration of any outside investment or government-backed support, he added.

Exclusive: Nissan sees bigger role for U.S., China markets in global car sales - sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email