- A restructuring plan will be announced in May.
- Nissan posted a $239.3 million net loss in its fiscal third quarter – the first quarterly net loss since April-June of 2009.
- Global retail sales fell 11% at the end of 2019, 17% in the US alone.
Only a few weeks ago, it was reported that Nissan was to cut thousands of jobs and close manufacturing sites in a bid to survive, as Nissan senior management had said. This was about a week after former Chairman Carlos Ghosn said that Nissan was headed towards bankruptcy within two to three years. This next round of cuts will be done to avoid this.
And, it appears, it will go down at all costs. At a recent shareholders’ meeting, Nissan CEO, Makoto Uchida, insisted that a severe restructuring plan that will ensure lasting results and the car company’s survival will be delivered in May. Part of this new plan involves coordinating with alliance partners Renault and Mitsubishi Motors in order for it to stick.
Uchida said: “The plan is underway today, fast. The direction we are following is not wrong… We are going to reduce our expenses in North America with no taboos whatsoever.” He added that “We will make sure that we steer the company in an effective way so that it is visible in the eyes of viewers. I will commit to this. If the circumstances remain uncertain you can fire me immediately. You can count on Nissan to change for the better.”
Nissan has already done a round of voluntary buyouts across Nissan’s U.S. operations more drastic actions are on the way.
Source: Automotive News
