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Nissan plans to slash May car output in Japan by 78%

TOKYO — Nissan plans to slash the number of cars it produces at home in May by 78% from last year, as the impact of the coronavirus shakes the troubled automaker which has already been struggling with falling sales. As global automakers reel from plunging sales amid lockdowns imposed in many countries to curb the spread of the virus, the hit is particularly severe for Nissan, whose profitability has been deteriorating as it grapples with the turmoil that followed the ousting of former Chairman Carlos Ghosn. Nissan plans to manufacture around 13,400 vehicles next month, according to documents seen by Reuters, compared with nearly 61,000 units made in May last year. The cut represents a big hit to Nissan's plant in Kyushu, southern Japan, which the automaker plans to operate on a single shift for much of this month and all of next month, due to a lack of demand for the Rogue Sport SUV crossover model, according to the documents, which are not public. Output will decline 70% from initial plans to build around 44,800 units. In June, domestic production will be cut to 33,700 vehicles, a drop from around 63,700 units last year, and down 43% from a previous plan for around 59,300. Nissan declined to comment on its production plans. The automaker has stopped production at its plant in Tochigi, north of Tokyo, since early April, and plans to keep output suspended through the end of May. Periodic stoppages at Nissan's Oppama plant in Kanagawa Prefecture have been common since earlier this month. The coronavirus pandemic has piled urgency on Nissan's efforts to downsize, after two years of falling sales, deteriorating margins and depleting cash reserves has forced the company to restructure. Nissan's management has become convinced that the company needs to be much smaller and its latest recovery plan due next month will likely assume a cut of 1 million cars to its annual sales target, senior company officials told Reuters earlier this month. Automaking partner Mitsubishi, also suffering from a cut to demand for its cars, is planning to slash domestic output by nearly one-third over the next two months. As both Nissan and Mitsubishi struggle with tanking sales, production plans show one bright spot: Nissan is planning an increase in production of the Nissan Dayz minicar model, which Mitsubishi manufactures for Nissan for the Japanese market. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Nissan CEO Makoto Uchida rules out closer capital ties with Renault

YOKOHAMA — Nissan is committed to its automaking alliance with Renault but will not look to deepen its capital ties with the French automaker any time soon, its new CEO said on Monday. On his first day in the new position, chief executive Makoto Uchida also pledged to repair profitability at Japan's No. 2 automaker and said setting realistic targets would be key toward that goal, as it tries to make a clean break from the leadership of former chairman Carlos Ghosn. "Closer capital ties with Renault are not a focus in the short term," he told reporters. Uchida became CEO of Nissan on Dec. 1, as the car maker tries to recover from a profit slump and draw a line under a year of turmoil after the Ghosn scandal. The ousted chairman is fighting financial misconduct charges in Japan. One of the new CEO's big tasks is to salvage ties with Renault, which have deteriorated since Ghosn's ouster as chairman of both companies. Renault holds a 43.4% stake in Nissan after it saved the Japanese automaker from financial ruin two decades ago, and has pushed for the two companies to merge. In rejecting a notion of a merger with Renault, Uchida, 53, echoes his predecessor Hiroto Saikawa, who stepped down in September. He added that the alliance must re-think how it can serve all of its three members, which also includes Mitsubishi Motors. "The alliance has to benefit each of its partners in terms of revenue and profit," he said. "We need to re-evaluate what has worked and what hasn't worked in the alliance in the past few years." The CEO called for Nissan to set "challenging but achievable" targets, adding that this and the launch of more new car models and vehicle technologies would be key to its financial recovery. Nissan is bracing for its lowest annual profit in 11 years and has slashed its dividend by 65%. Its struggles come at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride-hailing. "Somewhere along the way we created a culture of setting targets which could not be achieved," Uchida said, adding that this had resulted in a focus on short-term results. "Years of this had led Nissan to its current "difficult situation," he said, using heavy vehicle discounting in the U.S. market as an example of how aggressive sales targets to grow market share had deteriorated the company's brand.

2021 Mitsubishi Outlander PHEV Road Test Review | Improved but falling behind

You can’t tell by looking at it, but the 2021 Mitsubishi Outlander PHEV is a thoroughly upgraded version of the plug-in crossover that initially debuted in the United States for the 2018 model year. Yes, despite the fact that there is a completely new, from-the-ground-up version of the gas-only Outlander for 2022, the previous generation soldiers on in its plug-in hybrid form for at least the next couple of model years as the engineering team puts the finishing touches on an edition based on the new platform. Still, thereÂ’s a lot of new bits and pieces under the skin that make this a better and more useful electrified SUV than before. A new 2.4-liter four-cylinder engine replaces the previous 2.0-liter, bumping power to 126 horsepower and 148 pound-feet of torque. It join forces with upgraded electric motors to send as much as 221 hp to all four wheels. That's a 31-horsepower increase over the old Outlander PHEV.  Most of the time, the gasoline engine sends its power to the battery pack, leaving motive force to come from the two electric motors. Up front is a motor that delivers 60 kilowatts (around 80 hp) and 101 lb-ft; at the rear is a second motor that spins out 70 kilowatts (94 hp) and 144 lb-ft. That rear motor is up 10 kilowatts over the old version, which is significant. Electric range is boosted from 22 to 24 miles thanks to a 13.8-kWh battery in place of the old 12-kWh pack. These powertrain enhancements make the 2021 Outlander PHEV feel quicker around town than the old one while simultaneously improving its efficiency. Win/win. There are Eco, Save, Charge, Normal, and Sport driving modes, and they all make sense with the possible exception of Sport, since this is very much not a sporty sport utility vehicle. Save mode preserves the battery packÂ’s current state of charge in case you want to choose when to unleash your electrons (stop-and-go city driving after a lengthy highway commute, for instance), and Charge mode keeps the engine running to top off the battery pack while the vehicle is driven. We mostly left the vehicle in Normal mode and let it choose how to dole out the power. The overlying theme of the 2021 Outlander PHEV is one of peace and serenity. ItÂ’s quiet inside, and the electric motors provide a smooth driving experience with softish initial power that gains steam as the vehicle gets to normal around-town speeds. There arenÂ’t any gear changes, so the powertrain always feels smooth.