Nissan Motor said on Thursday it would cut its production capacity by a fifth to help decrease its fixed costs by 300 billion yen ($2.8 billion) as it looks to become a smaller, more cost-efficient automaker after a decline in sales.
The Japanese automaker stated its new four-year plan intends to make sure there would be steady growth as opposed to the excessive expansion of the past. The declaration came after Nissan posted an operating loss of 40.5 billion yen ($376 million) for the year ended March, its first loss in 11 years.
The automaker intends to close its Barcelona main plant and two nearby facilities from December 2020, but the two facilities in northern Spain, the chairman of Nissan in Europe will remain open, Gianluca De Ficchy, stated on Thursday.
“There was no viable solution for the future of the Barcelona factory,” he told reporters as employees protested outside the plant.