Another third will come from China.
Details about Nissan’s new roadmap continue to leak ahead of its official presentation set for later this month. If reports are accurate, Nissan is about to take a substantial undertaking to better position itself for success. The latest, yet another Reuters report, says the Japanese automaker will look to secure a third of its sales from the U.S. with another third coming from China. The rest of the company’s sales will rely on other markets.
The news above is just the latest in a series of revealing reports outline the company’s plan as it prepares to publish it alongside its financial results for its 2019 fiscal year on May 28. Previous reports have detailed how Nissan will focus on three core markets – China, the U.S., and Japan – while also looking to cut $2.8 billion in annual costs, which could include eliminating the Datsun brand.
Another part of Nissan’s plan is to have the alliance work better together. The plan calls for Mitsubishi, Nissan, and Renault to work closely together to reduce competition. With Nissan focusing on China, the U.S., and Japan, Renault will focus on Europe while Mitsubishi will cover other Asian markets where it already has a strong presence. The move should increase the company’s plant utilization percentage.
That means we’ll likely see Nissan shutter assembly lines and, possibly, factories. The company is considering closing its Barcelona, Spain factory, according to the publication, and Renault could move into Nissan’s Sunderland, England plant, too, to produce vehicles. The company will also put the money it’s saving into new products and technologies, which should help curb the sales slide in the U.S.
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The other third of Nissan’s sales – currently accounting for about 45 percent – will come from the brand’s emerging markets and Japan. Other countries that’ll make up that other third include Brazil and Russia, along with the European continent. The plan still needs to be reviewed by the company’s board later this month before being put into action, but the company needs some strategy to recover its profitability.