Nissan has decided to delay the restart of the bulk of its manufacturing operations in the United States, while the company’s top executives in Japan continue to revise the company’s strategy.
“We’ve extended downtime at our manufacturing facilities for further evaluation of the COVID-19 pandemic, market demand and supplier readiness before setting a restart date,” a Nissan spokeswoman said in an e-mail.
Nissan already resumed operations at the Infiniti powertrain plant in Decherd, Tennessee, which began to gradually resume production as of May 1.
Meanwhile, Nissan, which is facing major business challenges after a difficult stretch going back almost two years, is in the midst of a broad re-examination of the strategy put in place under the company’s former CEO Carlos Ghosn, according to press reports from Japan.
Nissan reportedly expects to reduce its operations in Europe to focus on the United States, China and its home market of Japan where it has steadily lost ground to archrival Toyota under a plan that represents a new strategic direction for the embattled carmaker, people with direct knowledge of the plan told Reuters.
The “operational performance plan,” which is expected to be announced later this month, goes beyond fixing problems from ousted Ghosn’s aggressive expansion drive, Reuters reported.
Pursuit of market share, particularly in the United States, led to steep discounting, which hurt the brand’s reputation with American consumers. Under the new, (three-year plan Nissan reportedly aims to restore dealer ties and refresh line-ups to regain pricing power and profitability, according to Reuters.