Report Claims Nissan to Announce 10,000 Job Cuts, Plummeting Profit
Nissan is currently preparing a financial report that is alleged to show its first-quarter profit falling by around 90 percent, necessitating over 10,000 job cuts. The company told the world to brace for a bad year in May, following an abysmal earnings report for the 12-month period ending on March 31st, 2019. At the time, CEO Hiroto Saikawa said the automaker had “hit rock bottom.” But Nissan is still falling, if reports are to be believed.
The Japanese company released a statement that vaguely refutes the claims against on Wednesday while also validating them. However, numerous unnamed insiders have suggested the reports are accurate and several named staffers acknowledged that the automotive firm was facing serious problems.
On July 24, 2019 the Nikkei Shimbun published an article regarding Nissan’s financial results for the first quarter of fiscal year 2019. The article was not based on any announcements by the company.
While the financial results for the quarter are still being reviewed, the operating profit figure reported in the Nikkei Shimbun article was broadly accurate. However, no official confirmation can be made until the final results have been approved by the company’s board of directors tomorrow. Following that approval, the company plans to announce the results on the same day.
We know Nissan is struggling in the United States. Years of angling for high volumes have tainted the brand’s image and necessitated heavy discounting, whittling down its profit margins as deliveries decline. It has become a snake eating its own tail.
“Deteriorating performance in the United States is a big issue that we’re facing,” Motoo Nagai, chairman of Nissan’s new audit committee told Reuters. “For a long time we were concerned with increasing volume [in America]. We were chasing numbers. Now it’s time to enhance the brand.”
Globally, Nissan still hasn’t recovered from the financial scandal involving Carlos Ghosn — who pioneered the high-volume plan, corporate alliance with Renault, and saved the company from disaster years earlier. Most official communications fault the automaker’s current plight on Ghosn’s “negative legacy.” But many investors are also concerned that the alliance is breaking down and fretting over the current management’s competency.
Saikawa, who was slated to be fired prior to Ghosn’s arrest late last year, initially said he would retire. But he is now staying on as CEO for an indeterminate amount of time. This has also been a source of concern due to the internal strife surrounding him. Although Nissan is currently hunting for his successor at his request — making an extended stay as chief unlikely.
Nissan’s quarterly results will be posted on Thursday. The job cuts are rumored to be isolated largely in Asia and South America.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- SCE to AUX "Having spoken to plenty of suppliers over the years, many have told me they tried to adapt to EV production only to be confronted with inconsistent orders."Lofty sales predictions followed by reality.I once worked (very briefly) for a key supplier to Segway, back when "Ginger" was going to change the world. Many suppliers like us tooled up to support sales in the millions, only to sell thousands - and then went bankrupt.
- SCE to AUX "all-electric vehicles, resulting in a scenario where automakers need fewer traditional suppliers"Is that really true? Fewer traditional suppliers, but they'll be replaced with other suppliers. You won't have the myriad of parts for an internal combustion engine and its accessories (exhaust, sensors), but you still have gear reducers (sometimes two or three), electric motors with lots of internal components, motor mounts, cooling systems, and switchgear.Battery packs aren't so simple, either, and the fire recalls show that quality control is paramount.The rest of the vehicle is pretty much the same - suspension, brakes, body, etc.
- Theflyersfan As crazy as the NE/Mid-Atlantic I-95 corridor drivers can be, for the most part they pay attention and there aren't too many stupid games. I think at times it's just too crowded for that stuff. I've lived all over the US and the worst drivers are in parts of the Midwest. As I've mentioned before, Ohio drivers have ZERO lane discipline when it comes to cruising, merging, and exiting. And I've just seen it in this area (Louisville) where many drivers have literally no idea how to merge. I've never seen an area where drivers have no problems merging onto an interstate at 30 mph right in front of you. There are some gruesome wrecks at these merge points because it looks like drivers are just too timid to merge and speed up correctly. And the weaving and merging at cloverleaf exits (which in this day and age need to all go away) borders on comical in that no one has a bloody clue of let car merge in, you merge right to exit, and then someone repeats behind you. That way traffic moves. Not a chance here.And for all of the ragging LA drivers get, I found them just fine. It's actually kind of funny watching them rearrange themselves like after a NASCAR caution flag once traffic eases up and they line up, speed up to 80 mph for a few miles, only to come to a dead halt again. I think they are just so used to the mess of freeways and drivers that it's kind of a "we'll get there when we get there..." kind of attitude.
- Analoggrotto I refuse to comment until Tassos comments.
- Kendahl Fifteen years ago, the GTO was on my short list of automotive retirement presents to myself. It was just a bit too big and gas mileage sucked compared to the 6-speed Infiniti G37S coupe I bought after test driving several brands. It's a pity owners of cars that are collectible the day they are bought screw them up with aftermarket modifications they don't need. I'd offer they seller top price less what it would cost to put the car back to stock. (I just traded in the Infiniti, in mechanically excellent and cosmetically very good condition with 78k miles, for a 2023 Cadillac CT4-V Blackwing.)