Agencies

Nissan is planning to cut about 300 billion yen ($2.8 billion) in annual fixed costs and book restructuring charges as the coronavirus pandemic further depresses the automaker’s sales, a person with knowledge of the measures said.

Those initiatives are likely part of a three-year plan that will be unveiled along with financial results on May 28, calling for Nissan to take more drastic measures to turn the manufacturer around, said the person, asking not to be identified because the information is not public.

The automaker will phase out the Datsun brand, shut down one production line in addition to the recently closed operation in Indonesia and reach the reduced spending target this year by cutting marketing, research and other costs, the person said.

Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn, with an aging car lineup and management paralysis denting its outlook. The automaker warned last month it expects to post a loss for the latest fiscal year through March, as the pandemic shuttered showrooms in major markets and the economic fallout dented consumer demand for new cars.

The plans still need to be reviewed by Nissan’s board and may change, people familiar with the deliberations around the restructuring plan said. The scale of the restructuring charge is still being determined as well, they said.

Although Nissan is forecasting a 12 percent decline in sales to 10.2 trillion yen for the just-ended fiscal year, the new mid-term plan calls for a return to revenue of 11.5 trillion yen within three years, with fixed costs kept at reduced levels, the person said.