Nissan Motor Co. (7201.t) On Friday, it canceled plans to build a 153 billion yen electric car batteries factory ($ 1.05 billion) in Kyushu, citing concerns about investment efficiency. The elbow, which was originally appointed to Catciochu in Fukuka Governorate, had created about 500 jobs and providing lithium phosphate batteries (LFP) that begins in July 2028.
The Japanese government pledged up to 55.7 billion yen as a factory subsidies, which was expected to produce 5 gigawatts annually. However, Nissan chose to reassess her local ambitions amid the broader financial and operational challenges.
“Nissan is taking immediate transformation measures and exploring all options to restore their performance,” the company said in a statement. “After carefully looking at investment efficiency, we decided to cancel the construction of a new LFP battery factory in the city of Kitakyushu.”
In a separate development, Nikki I mentioned that Nissan is preparing to provide early retirement for several hundreds of administrative employees in Japan – the first local reduction in 18 years. While the company refused to confirm the report, this step reflects its 2007 program, when it reduced 1,500 jobs in a local market.
This comes as part of a broader restructuring plan under the new CEO Evan Espinoza, who took over Macoto Oshida last month. The auto industry has previously announced that it will remove 9,000 in the world and reduce production capacity by 20 %.
Nissan is currently struggling with installation losses and expecting a net loss ranging between 700 billion and 750 billion yen ($ 4.80 billion – $ 5.14 billion) for the fiscal year ending in March, due primarily to weakness fees. The company will provide the road map to the recovery and financial expectations when its full general results are issued on Tuesday.
