In order to improve its overall utilisation rate, Nissan said, it will reduce global production capacity by 10 per cent by the end of the financial year 2022
Japanese automajor Nissan has decided to cut its production amid a slowdown in the car sales and decline in profit, in a move that could result in over 12,000 job losses globally, including 1,700 in India.
During a media conference in Japan on Thursday, Nissan said that it is implementing strategic reforms to build an operational base in order to ensure consistent and sustainable profitability over the medium term.
“The company is moving quickly to optimise cost structures and manufacturing operations, while also enhancing brand value, steadily refreshing its line-up and achieving consistent growth globally, including in the US,” the company said.
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In order to improve its overall utilisation rate, Nissan said it will reduce global production capacity by 10 per cent by the end of financial year 2022. In line with production optimisation, the company will trim headcount roughly by 12,500. Furthermore, the company will reduce the size of its product line-up by at least 10 per cent by the end of financial year 2022 to improve product competitiveness by focusing investment on global core models and strategic regional models.
Source: Business Standard
