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Nissan Motor to reduce presence in Europe as part of turnaround plan

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

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Nissan Motor | Europe

Reuters  |  TOKYO 

nissan
A car with the Nissan logo badge

TOKYO (Reuters) - is planning to further reduce its presence in and outsource the sales and manufacturing of its cars to alliance partner Renault, the daily Yomiuri newspaper reported on Friday.

As part of its global turnaround plan, which is reversing a rapid expansion led by the ousted former chairman, Carlos Ghosn, Nissan will cut its distribution channels in thirty countries, mainly in East It is also planning to close its Avila plant in Spain and convert it into a warehouse, the report said.

The Japanese motor company is currently moving its operations away from and shifting 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 cutting production capacity and model numbers by a fifth and aims to slash operating expenses by 300 billion yen over three years.

The company's three-way alliance with Renault and Mitsubishi Motor was plunged into uncertainty in 2018, when Ghosn was arrested on financial misconduct charges, which he denies. He later fled Japan while being monitored by law enforcement and awaiting trial at his residence.

 

(Reporting by Sakura Murakami: Editing by Neil Fullick)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, January 01 2021. 09:56 IST
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