Nissan mum about strategy

Roy Cokayne

The Nissan Motor Company of Japan has unveiled a new four-year transformation plan to achieve sustainable growth, financial stability and profitability. For now, however, it remains tight-lipped on its future strategy for Africa, including its plant in Rosslyn, Pretoria.

CEO Makoto Uchida said on Thursday the plan involved a focus on Nissan’s core operations in Japan, China and North America.

The company would be rightsizing its production capacity by reducing it by 20% from 7.2 million units a year to 5.4 million units; the closure of its plants in Indonesia and Barcelona in Spain; reducing fixed costs by about ¥300 billion (R48 billion; and rationalising its global product lineup by reducing its number of models by 20% from 69 to fewer than 55 models.

The SA question

Nissan SA was asked to comment on the company’s strategy for Africa, how it has changed as a result of the new restructuring plan, what the company’s plans are for its Rosslyn plant and if the new plan will have any impact on the R3 billion investment announced in 2019 for the production of the new Navara pickup in the plant.

The company said at the time this investment and the production of the Navara would expand the role of the plant as a light commercial vehicle manufacturing hub for Nissan. It said the Navara will join its NP200 and NP300 models, which are already built at Rosslyn and sold in SA and up to 45 pan-African countries.

Production was expected to commence in November this year and create about 1 200 new jobs directly at the plant and across Nissan’s local supply chain.

“Depending on market conditions, it is anticipated Navara’s arrival will add 30 000 units to Rosslyn’s current annual production volume of 35 000, creating the need for a new, second shift at the plant,” it said.

Veralda Schmidt, manager of media liaison, corporate affairs and communications at Nissan SA, said on Thursday that now that Nissan’s mid-term planning announcement has been made, “the local implications thereof will be announced at an appropriate time”.

Schmidt added that preparation of the Rosslyn plant for the Navara is continuing.

Uchida’s announcement of the transformation plan coincided with the release of its 2019 financial results.

Uchida said Nissan’s sales decreased 10.6% to 4.93 million units because of the significant slowdown in total sales in the fourth quarter following the outbreak of the pandemic, as well as the decrease in sales primarily in North America and Europe in the first three quarters.

The decrease in sales volume led to Nissan’s consolidated net revenues declining to ¥9.879 trillion. This resulted in an operating loss of ¥40.5 billion and net loss of ¥671.2 billion.