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Nissan union wants French to stop meddling with Renault alliance

Nissan is getting some unexpected reinforcements in its ongoing battle with the French government over its involvement in Renault. Its Japanese union, which has traditionally been a very hands-off entity, issued harsh criticism for the French government's attempts to assert control over its alliance partner. According to Bloomberg, this is the first time in 16 years that Nissan's union has weighed on the company's affairs, and it's stating its position on the matter in no uncertain terms. The union called France's attempt at scoring double voting rights within Renault "unacceptable and against the intended spirit of the Alliance." "We support the numerous attempts of Nissan to engage with the French government to find a balanced and constructive solution that will benefit and strengthen the Alliance," the union said in a statement obtained by Reuters. It's unclear what impact the union speaking out will have on the current power struggle between Renault-Nissan CEO Carlos Ghosn (shown above) and the French government, but we doubt it'll contribute to any quicker of a conclusion. Related Video: News Source: Reuters, BloombergImage Credit: Itsuo Inouye / AP Government/Legal Nissan Renault France renault-nissan alliance

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 will reduce its presence in Europe as part of turnaround plan

TOKYO — Nissan 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. 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 Europe. It is also planning to close its Avila plant in Spain and convert it into a warehouse, the report said. The report didn't provide details of the scale of the outsourcing. Calls to Nissan's public relations office went unanswered on Friday, a public holiday in Japan. The Japanese motor company is currently moving its operations away from Europe 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.