NISSAN WILL STOP PRODUCTION OF CARS IN AUSTRALIA IN 1993

NISSAN WILL STOP PRODUCTION OF CARS IN AUSTRALIA IN 1993

Nissan Motor Co., Japan's second largest automobile manufacturer, announced

plans to halt production in Australia in 1993 when Canberra lowers import tariffs.

From 1993, the company said, all Nissan cars destined for Australia will be shipped from plants in Japan.The move will result in the write-off of an estimated $320 million by selling property that the company holds in Australia. Presumably this would include Nissan's plant near Melbourne where last year the company assembled 35,527 passenger cars.

Spokesmen for Nissan told The Journal of Commerce that all but 200 of the

2,000 workers at the plant will be laid off as a result of the move.

In making the announcement, Nissan stressed that its decision results from a detailed study of middle- and long-term operational strategies for the subsidiary. The study, carried out by the parent company and Nissan Australia, took into account the current state of the automobile market in Australia, the changes in government motor industry policies and the subsidiary's profitability.

The Australian government released in March last year a plan to boost the competitiveness of the domestic auto industry by gradually reducing import tariffs.

Under the new program to become effective next January, Nissan Australia will concentrate on manufacturing aluminum components at its aluminum casting plant at Dandenong, Victoria.