Nissan to decrease presence in Europe as part of turnaround plan

Nissan Motor is planning to further decrease its presence in Europe and outsource the sales and manufacturing of its vehicles to alliance partner Renault, the daily Yomiuri newspaper reported on Friday.

As part of its worldwide turnaround plan, which is reversing a rapid expansion led by the ousted former chairman, Carlos Ghosn, Nissan will slash its distribution channels in thirty nations, mainly in East Europe. It is also planning to shut down its Avila plant in Spain and convert it into a warehouse, the report added.

The report didn’t provide information about the scale of the outsourcing.

The Japanese automaker is currently moving its operations away from Europe and moving its focus to China, the United States, and Japan.

Nissan, which expects to post a record operating loss of 340 billion yen ($3.25 billion) in the year to March 31, is slashing production capacity and model numbers by a fifth and aims to cut operating expenses by 300 billion yen over three years.

The automaker’s three-way alliance with Renault and Mitsubishi Motor was plunged into uncertainty in 2018 after the arrest of Ghosn on financial misconduct charges, which he rejects. He later fled from Japan to Lebanon while being monitored by law enforcement and awaiting trial at his residence.