Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
October 24, 2019 05:56 AM

Nissan explores sale of European plants in electric shift, report says

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Nissan is weighing options about the future of its two plants in Europe as the automaker faces declining sales in the region and an industry shift to electric cars, people familiar with the matter said.

    The automaker, which in March said it will stop selling the upscale Infiniti brand in Western Europe, is gauging interest from potential buyers for its factories in the UK and Spain, the people said, asking not to be identified because the discussions are private.

    Divesting one or both facilities is an option as Nissan's market share in the region has plummeted. While no decisions have been made, potential buyers could include Chinese automakers, the people said.

    A European retreat would demonstrate the breadth of measures under consideration to curb costs and address a dramatic slide in earnings since former Chairman Carlos Ghosn was arrested last year on charges of financial crimes.

    Profit at Nissan fell to almost zero in the first half of the year, giving Makoto Uchida, the incoming CEO, an uphill battle as he seeks to stabilize operations while patching up the strained relationship with alliance partner Renault.

    "At this time, we have no plan to sell those two plants in Europe," said Azusa Momose, a spokeswoman at Nissan.

    Nissan, which said in July that it plans to shed 12,500 jobs globally, aims to focus on its home market, as well as China and the U.S., the people said. Its market share in Europe has slid to just 2.5 percent through September amid a slump in sales.

    The fall of Ghosn, who denies the allegations, has roiled Nissan's relationship with Renault, its top shareholder, at a time of slowing industry sales and a costly shift to electric cars.

    Like other automakers, Nissan is under pressure from European regulators to roll out zero-emission vehicles that comply with new rules meant to cut pollutants.

    Nissan is considering importing combustion cars from Japan as trade barriers with the European Union fall away and focusing its manufacturing activity in the region on electric models such as the Leaf, according to the people.

    Doing so would reduce the need for vast factories in Europe because the process for making electric cars is simpler, with fewer parts and requirements for space and machinery.

    Nissan plans to cut the number of money-losing models, including those from the small-car Datsun brand and other compact cars, one of the people said, as it turns away from Ghosn's growth strategies.

    Reuters reported Wednesday the Datsun nameplate will be eliminated.

    Nissan has already announced some cutbacks in Europe, including plans to shed 600 jobs at its Barcelona plant, where about 3,000 people work. The facility is running below capacity of about 200,000 vehicles annually, the people said.

    In February, Nissan abandoned plans to make the X-Trail SUV at its Sunderland, UK, facility, citing uncertainty around Brexit.

    Brexit-induced tariffs on auto exports to the European Union will probably render Nissan's UK operations nonviable, the company has warned.

    The Sunderland plant, the UK's largest, would be harder to shutter. Last year it produced 450,000 cars, sending 70 percent of its output to the EU. It unveiled a new version of its Juke crossover, aimed at the European market, earlier this month. The same platform is being used by Renault to assemble the latest versions of the Clio supermini and Captur crossover, built across the Channel in France.

    Questions also hang over the future of Nissan's Micra small car, which is assembled at Renault's Flins plant near Paris. The factory, which also makes Renault's electric Zoe, is expected to build just over 50,000 Micras this year, well below an initial 82,000-vehicle target, two of the people said. Nissan has not committed to making another vehicle at the factory in the future.

    A spokesman for Renault declined to comment on Nissan's plants for Flins.

    RECOMMENDED FOR YOU
    Why are electric car names so bad?
    Recommended for You
    Toyota bZ4X driving down steep incline 2022
    Why are electric car names so bad?
    London taxi coventry factory 2023
    London black cab owner Geely explores raising fresh funds
    China electric car sales
    China set to extend EV tax incentives as sales growth slows
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us