Nissan To Redue Global Production

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Today, the Nikkei newspaper reported that Nissan Motor Co Ltd is set to reduce global production by approximately 15 percent for the current fiscal year ending March 2020, as it attempts to shift away from the aggressive expansion campaign that is promoted by Carlos Ghosn, its former Chairman.

The Nikkei reported that it would be the steepest production cut in over a decade by the Japanese automaker, as it strives to battle weak sales in overseas markets including the United States where it plans to scale back sales operations.

Citing plans that are being communicated to the suppliers of the automaker, the Nikkei said that Nissan is aiming to produce approximately 4.6 million units this year. The move is likely to affect the earnings and could cast a pall over the alliance of Nissan with Renault SA, the French automaker. Nikkei did not elaborate on the matter.

In an emailed statement, Nissan said that the report was not based on its announcement and the firm would not comment on speculation.

Earlier this year, Nissan has been battling falling sales. It has lowered its forecast for operating profit for the current fiscal year to 450 billion yen (3.09 billion pounds), 22 percent lower as compared to a year earlier. It would be the lowest profit for Nissan since 2013.

Nissan was contacted, however, it was not immediately available for comment regarding the matter.

The shares of Nissan, mired in a financial misconduct scandal that involves Ghosn and the company itself, were trading down 1.2 percent early today, versus a 0.6 percent increase in the broader market.