According to a news update from CNN Philippines, the Department of Trade and Industry (DTI) says that Nissan Philippines Inc., together with its vehicle assembly partner, Univation Motor Philippines, Inc. (UMPI), decided to shut down the Nissan Almera Sta. Rosa assembly plant on March 2021.
This move was decided upon after the expiration of the assembly contract between Nissan Philippines Inc., and UMPI.
A UMPI owned lot with Almera units
This was also decided upon by Nissan’s management, to follow its plan in optimizing its business operations and production.
If you remember, this is the Japanese carmaker’s way of getting back on track after a dismal global performance for the fiscal year 2019-2020. With this, Nissan will reduce costs, and thus become a leaner, more profitable company.
In response to the news of Nissan’s Sta. Rosa plant shut down, DTI Secretary Ramon Lopez says that this is all the more proof as to why the safeguard duty initiative should be implemented immediately. That way, the local industry can be protected from the entry of imports.
Of note, the said Nissan plant’s closure comes in the heels of other plant closures. Honda has since stopped its local assembly operations back in March 2020. Isuzu has also ceased its local assembly of the Isuzu D-Max and is now importing the said vehicle from Thailand.
Nissan’s Sta. Rosa assembly plant employs around 133 workers whose livelihoods will be affected. It is also a large blow to the local car industry.
For more news on the Almera model itself, let's wait for Nissan for more details
Do note that only the assembly plant for the Nissan Almera will be ceasing its operations. Nissan will still continue selling cars locally and will continue to strive for great customer experience, service, and quality products.
Univation Motor Philippines, the company contracted to operate the assembly plant in question, will still continue to operate as well.
We reached out to Nissan Philippines regarding the said plant shut down. Below is the car brand's official statement:
“Nissan in the Philippines, together with its vehicle assembly partner, Univation Motor Philippines, Inc. (UMPI), have made the decision to cease production operations for the Nissan Almera in the Santa Rosa plant in the Philippines, effective March 2021. The decision has been made following the expiration of the assembly contract between Nissan Philippines, Inc. (NPI) and UMPI.
The decision is aligned with Nissan’s plan towards optimized production and efficient business operations in the ASEAN region, as part of the Nissan NEXT transformation plan.
We were informed that UMPI will remain active in the Philippines and continue its other business operations in the country. The well-being of employees is the highest priority. Nissan is coordinating with UMPI to ensure a smooth transition.
Nissan remains committed to its investments in the Philippines. The company will continue to contribute to the growth of the Philippine automotive industry through its innovative products and excellent services, as well as its dealer expansion nationwide.
Nissan’s strategy in the Philippines is to keep the customer at the heart of our business and focus on strengthening the fundamentals of Product, Service, Customer Experience, and People. Our customer-centric approach guides our product and service offerings, as well as network expansion.”
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