- Nissan is preparing to announce its largest financial loss in company history this month.
- The automaker continues to struggle against fierce competition from Chinese EV rivals.
- Last year, it was forced to shut down another underperforming production facility in China.
Nissan is reportedly preparing to shut down production at its plant in Wuhan, China, following dwindling production of the Ariya and X-Trail models built there. It is another blow for the Japanese automaker, coming just days after news broke that Nissan is bracing for the worst financial loss in its history.
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News of Nissan’s plans first came from a local Chinese outlet. It’s understood that annual production at the plant has only hit 10,000 units since operations commenced in 2022. That’s pretty terrible, particularly since the plant has the capacity to build as many as 300,000 vehicles annually. Nissan is currently leasing the site from Dongfeng Motor.
Nissan’s Chinese Sales Were Way Off Target
According to Reuters, fierce competition from Chinese automakers has been a major factor behind Nissan’s underwhelming numbers. Domestic brands have surged ahead, leaving foreign companies like Nissan scrambling to keep up.
This isn’t the only Nissan plant in China that’s under serious pressure. In June last year, it closed its plant in Changzhou due to the jump in sales of Chinese EVs and dwindling demand for imported vehicles. This site had been operating alongside Dongfeng Motor since November 2020 and had the capacity to build 130,000 vehicles annually.
Nissan’s Is Between A Rock And A Hard Place
Nissan is in dire straits at the moment. We’re only a few months removed from its planned merger with Honda falling apart, and on May 13, it’s gearing up to release its full earnings report for the fiscal year that ended in March.
The forecast is grim. Last week, Nissan announced it expects to post a net loss of between ¥700 billion and ¥750 billion (roughly $4.91 billion to $5.26 billion), a massive jump from the ¥80 billion ($560 million) it had originally predicted.
Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese tech giant Foxconn.
Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese giant Foxconn.