The automaker has
Hello guest! Please register or sign in (it's free) to view the hidden content. its decision to build its X-Trail SUV at a plant in northern England and instead will produce it in Japan (the model's global hub). British Prime Minister Theresa May must be kicking herself for not insisting on "no take backs" language in the contract. So what's the reasoning? Seems like an entrée of consolidating production with a side of Brexit concerns.
"While we have taken this decision for business reasons, the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future," said Nissan's Europe chairman. Why this is extra painful: Nissan said it would make the model in the UK only four months after the tumultuous Brexit vote in 2016. The investment pledge signaled that things might turn out okay.
But they're not turning out okay
UK companies across industries are preparing for Brexit like it's the asteroid from Armageddon. Fine, that may be over-the-top, but still...
British factories Hello guest! Please register or sign in (it's free) to view the hidden content. in January at a rate not seen since the early 1990s as they brace for impact. It was the highest level ever seen in a G7 country. A Hello guest! Please register or sign in (it's free) to view the hidden content. from a lobby group showed that nearly 30% of British firms are either considering, or actively planning on, moving ops out of town.
Via the Guardian
But there's more to this Nissan story than Brexit
Lower demand for diesel vehicles in Europe is stinging carmakers...and Nissan's suffering the most. Last year, it cut hundreds of jobs at its northern England plant while watching European sales (down 14% in 2018)
Hello guest! Please register or sign in (it's free) to view the hidden content. that of Kia, Citroën, and Dacia brands. *Quickly Googles Dacia*. Okay that's not good. Zoom out: The UK auto industry is struggling from both Brexit and non-Brexit related factors. Investment
Hello guest! Please register or sign in (it's free) to view the hidden content. and new car production fell 9.1% in 2018, according to an industry trade group.
Hello guest! Please register or sign in (it's free) to view the hidden content.
Nissan is saying goodbye to one of its’ subsidiaries this year, their battery operations and manufacturing division to GSR Capital, a private equity firm based in Beijing.
NissanÂ’s subsidiary,Â Automotive Energy Supply Corporation (AESC), was founded in 2007 through a partnership with NEC, an electronics manufacture based in Tokyo, Japan. The joint partnership invested over $1B into the business throughout since its founding. AESC provides Nissan with all the batteries it uses in its electric cars, such as the Nissan Leaf and Renault.
AESC was the second largest automotive battery provider in the world, behind Panasonic. Panasonic has positioned itself to continue leading the industry through itÂ’s close partnership with Tesla.Â The company hasÂ held a market share of 34% at the end of 2015, compared to 12% percent of the market by AESC, and a 33% market share as an aggregate of the next five largest companies.
Nissan has been extremely aggressive in the EV market, with the Leaf having startedÂ production in 2010 as the first mass-produced electric vehicle. NissanÂ’s Chairman Carlos Ghosn has led the companyÂ’s expansion into the EV market and invested nearly $5B into the development of the Nissan Leaf. Ghosn made his intentions clear
Hello guest! Please register or sign in (it's free) to view the hidden content. that he wanted to divest from the battery business and that Nissan would instead, Â“rely more and more on batteries by existing suppliers.Â” The company purchasing the battery division, GSR Capital, primarily invests in early and growth stage companies. This would be their largest investment by a significant amount, but other investments by the company have included electronic and charging manufactures. The companyÂ’s massive entrance into the battery space could potentially create more collaboration between their portfolio companies and give them greater exposure inÂ the automotive sector.
Sonny Wu, Chairman ofÂ GSR CapitalÂ (Photo: Fortune)
Nissan is facilitating the transaction for AESCÂ’s joint-partnership between Nissan, NEC, and NECÂ’s subsidiary NEC Energy Devices. The sale is expected to close by December 2017, the value of the acquisition is unclear.
Hello guest! Please register or sign in (it's free) to view the hidden content. Â
Most OnlineNewest Member