After its failure to accomplish its vision in the market, Nissan is set to preclude Datsun under the Performance Recovery Plan.
Nissan Motor Company is set to rule out the Datsun brand. The company established Datsun no more than 6 years ago in order to expand in emerging markets such as Russia, South Africa, and India, with entry-level low budget cars whereas Nissan being middle and serving a sense of luxury to its customers. The Yokohoma based giant is taking this step in order to budget-cutting strategy internally known as the “Performance Recovery Plan” as the strategy under ousted leader Carlos Ghosn with his ambitious targets failed towards its commitments and caused deep wounds for Nissan after the arrest of Carlos Ghosn for alleged financial misconduct, this has left Nissan stranded with the lowest profit margins in these 11 years.
In India, Datsun featured the Go with its three models, the Go, Go+ and the RediGo, however, these budget cars didn’t perform well accordingly and the ambitions of the company. The RediGo was introduced to complete with its alliance partner the Renault anyway it struggled to beat the sales of KWID, which were almost three times that of the RediGo. Due to these uneven circumstances within months of its launch and the result of NCAP tests, the brand faced huge public discomfort and shame.
In July 2019, Nissan axed out about 12,500 jobs globally which was including India, Nissan also faced damage due to the fall of the automobile industry in India, several other companies are in the same boat as of Nissan in India, due to the new BS-VI norms, rising fuel prices and GST rates high people aren’t purchasing vehicles in the Indian market which has pricked the situation of Nissan even more here. Although under the “Performance Recovery Plan” which is understood, the company also mentioned reducing its production capacity.
According to Nissan, it won’t be leaving Datsun stranded as soon as of now, while the BS-VI variant of the RediGo facelift will be coming the next year 2020, we think that Nissan will be waiting till the end of their product life cycle and ax out the models that are not working well for them whereas the next generation models will be badged with Nissan branding.
Comments