Nissan is weighing options to integrate its long-standing Chinese joint venture partner, Dongfeng, into its global manufacturing network as part of a broad cost-cutting and restructuring effort, CEO Ivan Espinosa said this week.
The move could see Dongfeng share production facilities around the world, enhancing efficiency and flexibility within Nissan's global operations.
The announcement follows Nissan's disclosure that it will cut 11,000 jobs and shut down seven factories worldwide, though specific locations have yet to be confirmed. Combined with 9,000 layoffs announced last November, the company is reducing its global workforce by 15 percent, approximately 20,000 jobs, as it battles declining sales in the United States and China.
Espinosa sought to reassure staff at Nissan's Sunderland plant, the UK's largest car manufacturing facility, stating that "there is no intention to touch Sunderland in the very short term." The factory, which employs around 6,000 people, is set to benefit from new electric vehicle production, including updated versions of the Leaf, Juke, and Micra, all expected before the end of 2026.
Nissan's partnership with Dongfeng, which spans more than two decades and includes joint manufacturing operations in Wuhan, could now evolve into a broader global collaboration. The company hopes such integration will bolster cost-efficiency and supply chain resilience.
The restructuring comes amid mounting pressure on the automaker, which reported a loss of 670 billion yen—approximately 4.6 billion dollars or 3.4 billion pounds for the latest fiscal year. Nissan's turnaround plan, dubbed the "Re:Nissan" recovery initiative, also includes suspending new product development beyond 2026.
Offering further support for its UK operations, Nissan's battery supplier Envision AESC recently secured a one-billion-pound investment, partially backed by the UK government, to expand its gigafactory near the Sunderland plant.
The facility will supply batteries for the new EV models, reinforcing the plant's role in Nissan's electrification strategy.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.