The distant Nissan will get rid of the second Chinese factory

The company is going to stop the production at the factory in Jun, where the crossovers are produced by Ariya and X-Trail, writes Reuters. Nissan, who has been forgiven for a record loss for the current year, is already losing the second plant in China over the past two years. The reasons are the financial crisis and tough competition by local manufacturers.

The Chinese media reported about the upcoming closure of the site in Jun, which Nissan rents from Dongfeng Motor. Since the opening in 2022, the plant produced only 10 thousand cars a year, although its capacity is up to 300 thousand. Modest volumes of production is a consequence of weak sales in China, writes Reuters.

Information about the imminent closure of the plant appeared after Nissan announced the expected financial results that he would reveal on May 13. Pure loss, according to forecasts, will be a record 700–750 billion yen, or 4.91–5.26 billion dollars. Initially, analysts were more optimistic and predicted a loss of several times – at the level of 80 billion yen ($ 560 million).

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Last year, Nissan had to close another factory in the PRC – a site in Chanzhou, built together with the same Dongfeng. The plant worked since 2020 and produced 130 thousand cars annually, which was about eight percent of the total Nissan output in China. Nissan Qashqai came off the assembly line.

In an effort to preserve the business, Nissan takes advantage of any opportunity to save: reduces thousands of employees, closes plants and optimizes the model range. Also, after the failure of the merger of the Honda, the search for a new investor continues, and the Taiwanese technohigant Foxconn is still listed in the candidates.

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