Nissan plans to cut global capacity by 20% to shift production from Barcelona to Renault

SMM5 March 15: it is reported that the Renault-Nissan-Mitsubishi alliance is being forced to undergo a major restructuring under the impact of the new coronavirus epidemic, in which Nissan may cut global capacity by 20% in the fiscal year ending March 2023.

The Renault-Nissan-Mitsubishi alliance has been in turmoil since former chairman Carlos Ghosn (Carlos Ghosn) was arrested at Tokyo airport on suspicion of financial irregularities in November 2018. But the outbreak has led to widespread factory closures and a sharp drop in car sales, pushing the three partners closer together. The three parties plan to relocate production at global plants to make more efficient use of capacity.

To that end, Nissan will close a plant in Barcelona, Spain, and shift production to Renault. At the same time, Nissan and Renault are also considering whether to expand shared plant production to other plants in Europe and South America.

Nissan produced about 55000 cars at its Spanish factories in fiscal 2019, accounting for about 10 per cent of its European production. The company's auto assembly plant in Barcelona is a major manufacturer of cars and pickup trucks. Although the plant has become an export hub for Nissan, it has been operating at about 30 per cent of capacity, well below the level needed to make a profit.

In addition, Nissan and Renault are fighting to increase the share of shared parts from the current 40 per cent to 70 per cent as part of a cost-cutting plan. They will also accelerate efforts to adopt shared car platforms. These measures should reduce procurement costs and make it easier to share each other's global production networks. In addition, Nissan and Renault will also work together to develop electric cars.

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