Nissan To Introduce High-Tech Production System Despite Immense Pressure Of Cost Cutting
Nissan Motor Co. is all set to introduce a new, higher-tech production system globally in order to boost efficiency as it looks to reverse a slide in profitability.
The company revealed that the updated equipment and other technologies, which include increased automation for applying sealant and installing powertrains, will be unveiled starting with Nissan’s Tochigi factory from next year at a cost of 33 billion yen ($304 million).
The automaker has refused to disclose the names of the plants that will be in the process of upgradation and has also refrained from sharing the total budget of the project. Nissan has seen profit plunge this fiscal year, hit by a stronger yen and falling sales in its key markets of China and the United States, forcing it to slash its forecast for operating income to an 11-year low.
A new executive team will take over from December 1 under the aegis of 53-year-old Makoto Uchida, who ran Nissan’s China business. The change comes a year after the ouster of former chairman Carlos Ghosn, who is awaiting trial in Japan on charges of financial misconduct, which he denies.
Nissan is incorporating a global recovery plan under which it will axe nearly one-tenth of its workforce and cut global vehicle production by 10% through 2023 to rein in costs which the company says ballooned under Ghosn.
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