Japan’s Nissan Motor to cut distribution channels in thirty countries

In a report on Friday, Yomiuri Shimbun (daily newspaper) said that Nissan Motor (TYO: 7201) was considering reducing its operations further in Europe. Sales and manufacturing of Nissan cars, the report added, is expected to be outsourced to alliance partner Renault.

Nissan has recovered sharply in the stock market from a low of £2.24 per share in March to £3.97 per share currently. If you want to invest in the stock market online, you’ll need a stockbroker – here’s a list of the top few to make selection easier for you.

Nissan will turn its Avila plant in Spain into a warehouse

Nissan’s former chairman, Carlos Ghosn, who was later ousted on charges of a litany of financial misdeeds, had implemented a rather aggressive expansion plan in recent years. Currently, the auto manufacturer is in the process of a global turnaround that reverses Ghosn’s strategy.

The turnaround will see Nissan pulling out of its distribution channels in as many as 30 countries located primarily in Eastern Europe. The report also said on Friday that the carmaker will turn its Avila plant in Spain into a warehouse.

In the upcoming years, Nissan plans on slowly pulling out of Europe and expanding its footprint instead in the United States, Japan, and the world’s largest car market, China. In separate news, U.S. electric car manufacturer, Tesla Inc. said on Friday that deliveries for its China-made Model Y SUV (sports-utility vehicle) will begin in January.

Nissan forecasts £2.41 billion of record operating loss this year

In an earlier announcement, Nissan had forecast £2.41 billion of record operating loss for the year that will conclude on 31^st March. The Japanese multinational’s business was particularly disrupted in 2020 due to the ongoing Coronavirus pandemic that weighed on the global auto industry. The COVID-19 crisis has so far infected more than 83 million people worldwide and caused over 1.8 million deaths.

According to the Yokohama-based company, it will slash model numbers and production capacity at large by roughly 20% in pursuit of a £2.13 billion of reduction in operating expenses over the next three years.

A different report from Bloomberg said on Friday that the Brexit deal might be too little too late for Japan’s automakers. Nissan performed slightly downbeat in the stock market last year with an annual decline of roughly 10%. At the time of writing, the Japanese multinational automobile manufacturer has a market cap of £17 billion.