Nissan to Cut Global Production Capacity by 20 Pct
Tokyo, May 15 (Jiji Press)--Nissan Motor Co. <7201> is considering reducing its global vehicle production capacity by around 20 pct from some seven million units per year at present, sources familiar with the matter said Friday.
The move is part of an effort by the struggling Japanese automaker to reverse the expansion policy led by former Chairman Carlos Ghosn.
Nissan's global vehicle sales fell below five million units in the year ended in March 2020.
Options under consideration include shutting down a commercial vehicle plant in Spain, which has not been operating at full capacity, the sources said.
The company is expected to include a capacity reduction in its medium-term business plan, due for release on May 28 together with results for the year ended last March.
[Copyright The Jiji Press, Ltd.]