Nissan Motor Co. Ltd. will slash its China sales target by 8%, or over 200,000 units, to 2.39 million vehicles sold by 2022, Bloomberg News reported March 20, citing people familiar with the matter.
CEO Hiroto Saikawa, who succeeded the embattled Carlos Ghosn, could also scale back his predecessor's $9 billion investment plan for China as the world's biggest auto market continues to suffer from slumping sales and tariff troubles. The executive plans to "put profitability before growth in sales volume," which could mean no new models will be introduced in China until 2021, the sources told Bloomberg.
The Japanese company currently runs its China operations with local automaker Dongfeng Motor Group Co. Ltd., though a spokesman reportedly said no changes regarding the China business plan have been announced. Dongfeng and Nissan plan to review their mid-term targets and could make further adjustments, the report added.
Nissan is the latest automaker to hit snags in its plans for China. Luxury carmaker Bayerische Motoren Werke AG's plan to turn China into an export hub for electric vehicles may get put on hold over trade uncertainty.
On Feb. 12, Nissan cut its full-year outlook for fiscal 2019 after its third-quarter income plunged 76.7% to ¥70.41 billion due to a "consistently challenging" market.
As of March 21, US$1 was equivalent to ¥110.83.