Wednesday, June 19, 2024

Nissan loses speed; production fell 22% in July

July was a historically bad month for the Japanese automaker Nissan, the largest automotive manufacturer in Mexico.

Nissan produced 38,409 cars last month, a decline of 21.6% compared with the same month in 2018. Meanwhile, sales of Nissan vehicles continued a 26-month decline, dropping 13.5% compared with July 2018.

Last December, Nissan announced that it would lay off 1,000 workers in its three Mexico plants because of “challenging” conditions in the internal market and a global restructuring of the firm.

Nissan produces and exports more cars in Mexico than in any other country.

The Japanese company also produces more vehicles than the other 20 automakers that operate in the country, accounting for around 20% of production. Although Nissan has lost around four percentage points of production share in the past two years, it remains the top vehicle producer.

Nissan has experienced significant growth since 2009, related to the economic crisis. However, according to professor Manuel Valencia of the Monterrey Technological Institute, the company is stagnating after its decade of growth, while its competitors are adapting to changing market conditions.

The trouble for Nissan México come at a time when the company is struggling around the world. In the second quarter of the year, Nissan’s net income was 95% lower than in the same period in 2018.

Source: El Universal (sp)

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