(Bloomberg) — Nissan Motor Co. plans to repair its flailing finances without closing factories, according to people familiar with the matter, as it looks to revitalize its business before a capital tie-up with Honda Motor Co.
Nissan will instead focus on reducing and consolidating existing production lines both in Japan and overseas to cut costs, the people said, asking not to be identified because they’re not authorized to speak publicly. Employee work shifts may also be trimmed, the people said.
Previously announced plans to cut 9,000 jobs globally and reduce production capacity by 20% are making progress, they added.
Nissan is taking steps to improve its performance, including the implementation of a structure to secure sustainable profitability and cash generation even with a projected annual sales of 3.5 million units by fiscal 2026, the company said in a statement. More details will be provided at a later date, it said.
Chief Executive Officer Makoto Uchida has said previously that all options are on the table.
Honda Chief Executive Officer Toshihiro Mibe said in December that Nissan’s recovery is a prerequisite for any kind of alliance, and that both companies need to be independently viable for integration to materialize. Nissan not outright shutting any factories may therefore irk Honda, which is looking for wholesale change from its smaller rival.
Honda is expected to take the lead in bringing the two automakers together under the one holding company and may give further details of its game plan as soon as this week.
Local media reports last week said Nissan plans to end production later this year of its AD compact van at a facility in Japan. Nissan has yet to publicly announce any details regarding job cuts.
–With assistance from Nicholas Takahashi.
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