Ramla SoniThe car giant Nissan, is considering pulling out of South Korea in the latest deterioration in trade relations between Japan and South Korea, the Financial Times reported.
According to multiple people familiar with the company’s thinking, the potential move comes after sales of Japanese cars in South Korea fell by more than 50% in August from 12 months earlier.
The trade war is not helping South Korea’s export-dependent economy, exports fell by 13.6% year-on-year in August, the ninth consecutive month of contraction.
Nissan’s deliberations could be an indication of the potentially wider fallout against some of Japan’s biggest brands.
The carmaker’s annual sales in South Korea have only stood in the few thousands, with the company selling only 58 vehicles in the east asian nation in August, according to the Korea Automobile Importers & Distributors Association.
This is an 88% plunge in sales compared to the same period in 2018.
Additionally, Nissan has also found that multiple senior executives received excessive payments as part of an incentive scheme. It is due to conclude a 10-month investigation into the finances and governance of the company’s former CEO Carlos Ghosn.
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