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Report: Japan's Nissan mulls South Korea exit as trade row hits sales

Nissan Motor Co. Ltd. is considering exiting the South Korean market as worsening Tokyo-Seoul relations and consumer boycotts continue to dent sales, the Financial Times reported, citing sources.

The Japanese carmaker saw sales plunge 88% year over year in August to 58 vehicles, according to data from the Korea Automobile Importers & Distributors Association.

Sources said Nissan was already discussing pulling out of the market and that the deteriorating relationship between Japan and South Korea sped up the talks.

Nissan is also considering options for an SUV plant in Busan owned by its alliance partner Renault SA. The Japanese carmaker said the plant, which is operated by Renault Samsung Motors Co. Ltd., builds models Nissan already manufactures in Japan and the U.S.

The sources also added that a potential exit from South Korea is part of a wider restructuring that it announced in July. The Japanese carmaker said it would slash 12,500 jobs worldwide after net income plunged 95% year over year.