Nissan Philippines plans to collaborate with partner Mitsubishi Motors Philippines Corp. to assemble vehicles in Mitsubishi’s plant in Sta. Rosa, Laguna.
"We continue to look for alliance opportunities with Mitsubishi in the Philippines as we did in the past with the aim to enhance the competitiveness and profitability of the partner companies. We will keep you updated as soon as we have more to announce," Nissan said in a statement.
The two car companies belong to the Renault–Nissan–Mitsubishi Alliance, which is considered the world’s largest automotive partnership. The alliance’s business model aims to enhance the competitiveness and profitability of the three partner companies.
“With a strategy aligned with the global direction, we see the new alliance plan as a great opportunity to explore further collaboration, with the aim to enhance the competitiveness and profitability of the partner companies,” Nissan said.
The company said that in the Asia and Oceania region, Nissan, Renault and Mitsubishi enjoy a very constructive collaboration.
It said that in the Philippines, the alliance companies share a joint staff training center and warehouse while in Indonesia, Mitsubishi produces Nissan Livina, a multi-purpose vehicle that has great acceptance and success with Indonesian customers.
The Philippines remains one of the key markets for Nissan’s business strategy for the Asia and Oceania region. Core models such as the Nissan Terra and Navara have become a favorite among consumers and continue to deliver excellent services and products to Filipino customers, he said.
Nissan Motor Co. Ltd., the parent company, recently announced a four-year plan to achieve sustainable growth, financial stability and profitability by the end of fiscal-year 2023.
By implementing the plan, Nissan aims to achieve a 5-percent operating profit margin and a sustainable global market share of 6 percent by the end of fiscal year 2023, including proportionate contributions from its 50-percent equity joint venture in China.
The plan involves right-sizing Nissan’s production capacity by 20 percent to 5.4 million units a year under the assumption of a standard shift operation while achieving plant utilization rate above 80 percent.
The company also plans on rationalizing the global product line-up by 20 percent, from 69 to 55 models or less to reduce fixed costs by 300 billion yen.
