Nissan recently completed the sale of its defunct factory in Indonesia. The factory, one of two owned by the automaker, was sold to Indomobil Group, Nissan’s domestic partner in Indonesia.
“RIGHTSIZING” AND CLOSURE
Spanning 3,000 square metres, Nissan invested JPY 3 billion (AUD 30.9 million) to build this plant back in 2014. This plant, located in West Java, originally manufactured engines and transmissions, according to an article from The Association of Indonesia Automotive Industries (GAIKINDO). Its operations began in 2017 and produced as many as 96,000 units per year.
Additional information revealed that the West Java plant produced models for both Nissan and its subsidiary, Datsun. These specific models were the X-Trail and Serena for Nissan and Datsun’s Go Panca and GO+ Panca.
“We have stopped our production line back in March. Therefore, the next step taken is to close the facility,” said Nissan spokesperson Hana Maharani to Jakarta Post.
Unfortunately, the plant formally ceased production in March 2019. Nissan closed this factory as part of its financial “rightsizing” optimisation plan, along with another plant in Barcelona.
THE FINAL SALE
The final sale of its West Java plant is one of Nissan’s most recent attempts at recuperating its finances. Late last year, the company laid off 9000 workers worldwide amid its financial crisis. Nissan aimed to cut its costs by at least AUD 3.9 billion to recover from its 2024 losses.
Indomobil, or PT Indomobil Sukses Internasional Tbk (IMAS), acquired the West Java plant through its subsidiary, PT National Assemblers (NA). In addition to the plant, Indomobil also bought out PT Nissan Motor Indonesia (NMI) from its mother company and 99.9 per cent of NMI shares through NA. Acquiring these shares entails Indomobil to Nissan’s manufacturing arm and 75 per cent of Nissan Motor Distributor Indonesia.
According to AutoIndustriya, Indomobil’s plans with its Nissan acquisitions have not yet been announced.
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