Niterra announced its withdrawal from the US auto parts business. The company sold its automotive replacement parts business as part of the portfolio optimization under its medium-term plan, as changes in procurement policies among major customers caused the business to become unprofitable amid the impact of COVID-19 and tariffs imposed under the Trump administration.
Niterra announced that it will withdraw from the auto parts business operated by its US manufacturing and sales subsidiary. The background to the withdrawal includes changes in the external environment, such as COVID-19 and tariffs under the Trump administration, as well as continued unprofitability after major customers changed their procurement policies.
The company disclosed that it sold its automotive replacement parts business as part of its efforts to optimize its portfolio under its medium-term management plan. Through the reorganization of the business in question, it plans to review its business structure.
The decision is viewed as part of a restructuring based on the business continuity and profitability of the US subsidiary. Details of the future division of operations and asset disposals are expected to be disclosed separately.
Additional disclosure is awaited regarding the future impact on the market and business partners, among other matters.