
Nissan Motor Co. will pull production out of Indonesia, The Yomiuri Shimbun learned Tuesday.
The withdrawal, included in the company's midterm business plan to be unveiled in May, is the first of streamlining measures that the new top management will implement to improve the automaker's business performance. The company intends to continue car sales in the country under the Nissan brand, sources said.
According to the sources, Nissan decided Tuesday to withdraw production from Indonesia and explained it to employees at its local plant. This fiscal year, production at the plant has been limited to Datsun vehicles, a brand for emerging markets.
The company will consider how to utilize plant equipment in the future but, for the time being, there have been proposals such as using the facility to make engines for locally produced vehicles of Mitsubishi Motors Corp., Nissan's partner.
On the other hand, Nissan aims to strengthen sales. As the Indonesian automobile market continues to expand, the company plans to gradually introduce its mainstay models produced in Thailand and Japan, in addition to the minivan Livina, which is supplied by the Mitsubishi plant in Indonesia and sold under the Nissan brand.
In July last year, Nissan announced structural reform plans to improve its earnings. The plans call for reducing the company's global production capacity by about 10% by fiscal 2022, and cutting about 12,500 jobs, or about 10% of the group's total workforce, among others.
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