Nissan and its Infiniti brand exit Korea after tough year
“Despite Nissan Korea’s effort to continue business in the local market, the business condition here deteriorated due to both internal and external factors,” said the local unit of the Japanese carmaker Thursday. “The headquarters concluded that it would be difficult for the brand to again build sustainable business structure in Korea.”
Nissan Korea’s operations are slated to terminate by the end of December, but warranty and after-sales services will continue until 2028, according to the importer. Detailed plans will be updated through its website.
The company has no manufacturing in Korea. Its local units is an importer and distributor of cars made elsewhere.
Sales of Nissan cars have been dismal in Korea, especially since last year when consumer sentiment against Japanese products intensified.
Nissan Korea sold 3,049 units in 2019, a near 40 percent drop compared to the year before. Its sales from January to April 2020 was 813 units, which is a 41.3 percent on-year drop. A total of 2,000 Infinitis were sold last year, a 6.1 percent on-year decrease.
The Japanese carmaker said Thursday that it will be closing factories in Spain and Indonesia to increase profitability.
Nissan reported a 671 billion yen ($6.2 billion) net loss for this fiscal year ending March 31, compared with a 319 billion yen net profit in the previous year, according to the company. It is the Japanese carmaker's worst performance since the year ending March 2009.
BY JIN EUN-SOO [firstname.lastname@example.org]
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