Nissan has announced that it will be ending vehicle manufacturing in Indonesia with the closure of its second assembly plant in the country. The automaker had two plants in the republic, but closed the first – which produced Nissan-badged cars – in September last year. The remaining plant, which builds Datsun models, will also now be shuttered.

The move, which the company said is part of an optimisation plan, was announced by PT Nissan Motor Indonesia president Isao Sekiguchi via email, Bloomberg reports. The second factory, located at Purwakarta, was opened in 2014 and boosted total production capacity to 260,000 units a year. It currently assembles the Datsun GO, GO+ and Cross, but production was halted in late January.

According to an analyst, Datsun sales have taken a dive in recent times, and propping the brand would require a lot of time and money, the latter something the automaker is keeping a close eye on. With layoffs and cost cuts being more paramount at the moment, the analyst said that there is a high chance that the plug will be pulled on the sub-brand.

Current CEO Makoto Uchida has said that deeper cuts will likely be necessary to turn around the automaker, which has been in turmoil since the saga involving former chairman Carlos Ghosn broke in 2018. Last May, the company said it would be scaling back production in eight facilities worldwide, including Indonesia.

In July, with profits down by nearly 95%, the slash in production had been expanded to 14 facilities, and the company also announced a global downsizing move involving the axing of 12,500 jobs over the next three years, including 6,400 jobs at production facilities. Production is also set to be reduced by 10% into 2023.