
Core Viewpoint - Nissan plans to reduce its production capacity in the Chinese market from approximately 1.5 million units to 1 million units, indicating a potential closure or transfer of more factories and a reduction of about one-third of its capacity [4]. Group 1: Nissan's Production Capacity and Financial Performance - Nissan's production capacity in China will be reduced, leading to the closure or transfer of more factories, which reflects a significant strategic shift in response to declining sales [4]. - The cumulative sales of Dongfeng Nissan from 2021 to 2024 show a downward trend, with sales figures of 1.0671 million, 917,300, 723,100, and 631,200 units, representing year-on-year declines of 11.04%, 14.04%, 21.53%, and 12.7% respectively [4]. - As of 2024, Dongfeng Nissan's production capacity utilization rate is only 42.65%, significantly below the industry standard of around 80% [5]. Group 2: Lantu Automotive's Expansion - Lantu Automotive plans to acquire a land parcel from its parent company Dongfeng Group for approximately 723 million yuan, which will be used for its Wuhan Yunfeng factory, previously utilized by Dongfeng Nissan [2]. - The Yunfeng factory has an annual production capacity of 150,000 units, expandable to 300,000 units, and has been producing Lantu's models since last year [2]. - Lantu's Golden Factory, also located in Wuhan, is set to be fully operational in 2024 with a designed annual capacity of 150,000 units, currently achieving a stable daily output of over 600 units [4][3]. Group 3: Market Dynamics and Strategic Adjustments - Nissan's global retail sales for the first quarter of the 2025 fiscal year were 707,000 units, a year-on-year decrease of 10.1%, with a net sales revenue of 2.7 trillion yen, down 9.7% [5]. - The company reported an operating loss of 79.1 billion yen and a net loss of 670.9 billion yen for the 2024 fiscal year, prompting a global capacity reduction plan of 20% by the 2026 fiscal year [5]. - Nissan's CEO announced plans to reduce the number of production bases from 17 to 10 and to lay off 20,000 employees as part of a broader transformation strategy [5].