Nissan has closed one of its two plants in Karawang, Indonesia and has stopped making Nissan-badged cars in the country, Kyodo News reports. This happened over six months ago, when production of the Nissan Livina MPV was transferred to Mitsubishi. The latest Livina is a rebadged Mitsubishi Xpander, and Nissan controls MMC, so this makes business sense.
The remaining Nissan plant in the republic produces Datsun cars. Both were located at the Kota Bukit Indah Industrial City in West Java, 65 km east of Jakarta. Asked for comment, Nissan’s country head Isao Sekiguchi said the company had implemented “production optimisation and restructuring of operations.”
Production volumes have gone done sharply over the years. Last year, Nissan produced 3,468 units in Indonesia, 70% down from 2017 figures. That represents just 0.3% of the country’s total production volume, according to Gaikindo’s official numbers. It isn’t much better at the Datsun plant, with just 2,596 units made in the first half of 2019, down 72% year-on-year.
In July, Nissan announced a global downsizing move that will involve the axing of 12,500 jobs in the next three years. That total will include 6,400 job cuts by March 2020 at eight production bases worldwide. Indonesia is one of it. Besides the MMC-made Livina, Nissan Indonesia’s offerings are CBU imports from Thailand (Navara, Terra) and Japan (Leaf, Elgrand).
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