According to the latest report from Nikkei, Nissan Motor officially closed its passenger car factory in Changzhou, Jiangsu, a joint venture with Dongfeng Motor, last Friday.
In response, Dongfeng Nissan stated that the factory was not closed but was in a state of "suspended production".
Dongfeng Nissan Changzhou Factory. Image source: Dongfeng Motor News
It is reported that the Changzhou plant mainly produces the Qashqai SUV. On November 18, 2020, the plant officially rolled off the first car, just four years after its construction. Nissan's current total production in China is about 1.6 million vehicles, of which the Changzhou plant accounts for 8% of its production.
According to leaked information, after the closure of the Changzhou factory, the SUV "Qashqai" produced by the factory will be transferred to the Dalian factory for production.
According to Dongfeng Nissan, the adjustment of the Changzhou plant is based on the changes in the company's overall strategy and business environment, and is to optimize and adjust internal production capacity and resources to better adapt to the transformation and development of the enterprise. Earlier, Nissan announced plans to stop the research and development of internal combustion engines and make electric vehicles the future of Nissan.
Outside analysts believe that this adjustment is also related to Nissan’s continued decline in sales in China.
Data shows that Nissan's sales in China, including passenger cars and light commercial vehicles, were 64,233 vehicles in May, down 2.8% year-on-year. From January to May 2024, Nissan's cumulative sales in China, including passenger cars and light commercial vehicles, were 286,445 vehicles, down 1% year-on-year.
In addition, in response to the news of factory layoffs, Dongfeng Nissan stated that Dongfeng Nissan will provide about 600 job options for the factory's 300 employees, including transfer positions in Changzhou City or Dongfeng Group's subsidiaries. Those who are unwilling can coordinate to terminate their labor contracts.
