By on May 22, 2020

Early last year, Nissan, watching global sales wane and the pressure on its (un)balance sheet increase, hinted at the potential for 10,000 job cuts, per sources. That number then rose to an official 12,500, as North American pressures added to woes in Asia and Latin America. The unexpectedly eventful year of 2020 began with buyouts in the U.S.

Now, a report out of Japan — one that seems to reflect the company’s anticipated new direction — claims the automaker’s workforce will require a 20,000-strong cull, this time with Europe as the focal point.

Kyodo news (via Reuters) claims the updated figure takes into account new pressures arising from the coronavirus pandemic. Mainly, cratering sales demand and the Renault-Nissan-Mitsubishi alliance’s anticipated mid-term plan, which will see each member focus on their core strengths in specific markets. Fewer markets for each, to be clear, with maximum use made of existing resources.

Recent reports claim the near future will see reduced production for the once-expansionist Nissan, with Europe playing a smaller role and the U.S. and China boosting their importance. Volume from those two countries would make up two-thirds of Nissan’s sales. Confirmation of the plan is expected next week.

The new report’s boosted layoff number, centered around Europe, jibes with claims that Nissan will relegate its presence in the continent to just a handful of strong-selling products; utility vehicles and commercial vans. Nissan is also expected to reduce its presence in Southeast Asia.

[Image: Nissan]

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15 Comments on “As Nissan’s Recovery Plan Evolves, the Number of Potential Job Cuts Grows...”


  • avatar
    Jeff S

    Nissan is likely to cut the quality of their products further which would make me less likely to consider buying one of their vehicles. Raise the price and cut quality.

    • 0 avatar
      redapple

      Jeff

      I fear you are correct.

    • 0 avatar
      ajla

      I agree. Seeing a company burning and slashing makes me unlikely to drop $20,000+ on one of their products.

    • 0 avatar
      Lorenzo

      I don’t know if Nissan can cut quality much more. If the US and China are their main markets, it would seem a return to quality would be necessary.

      Ghosn reduced quality for volume at a cut rate price. If they’re cutting back to the US market expecting higher prices, there will have to be a return to quality.

      I still believe there’s a plan to extricate Nissan from the alliance, with Japanese government help. Partnering with Mitsubishi, with the latter concentrating on Asian markets, and Nissan in North American markets, would make sense.

      Leaving the European market and leaving Asian markets to Mitsubishi would fit as part of a separation from Renault. Reducing or eliminating the Renault/French government stake is the hard part.

  • avatar
    Imagefont

    Renault—Nissan—Mitsubishi
    Dumber together.

  • avatar
    schmitt trigger

    The Day of Reckoning has finally arrived.

  • avatar
    redapple

    Nissan, such a shame. They used to make good stuff. Shame.

    Orange Man bad regardless.

  • avatar
    Jeff S

    @redapple–Agree Nissan use to make really good vehicles that held up especially when they were Datsun in the US. I would like to like Nissan but they have a bad history under Renault.

    • 0 avatar
      Peter Gazis

      Jeff S.

      Here on planet Earth, Datsun got a reputation for making crappy unreliable vehicles. The company had to change its name in an effort to overcome the poor quality stigma.

  • avatar
    Peter Gazis

    Daihatsu, Isuzu, Suzuki, Mitsubishi, Nissan
    Just another Japanese car company going away. In a dozen years they’ll all be gone.

    For real Americans (the ones that beat up you foreign car lovin’ Suzys in grade school) We are one step closer to the inevitable return of Mercury & Pontiac.

    • 0 avatar
      Lou_BC

      I’m sure your fellow clansmen have pointed out what your name is similar to.

    • 0 avatar
      Lorenzo

      Daihatsu is owned by Toyota, so it’s not going away. Isuzu is a major bus, truck, and diesel engine maker in Asia and the Middle East. It’s not going away either, unless you mean from the US, but that’s already happened.

      Suzuki has also left the US, but is still a global motorcycle, 4WD and all-terrain vehicle maker in Japan and much of Asia.

      Mitsubishi and Nissan are too big for Japan to let go belly-up, but they’ll have to separate them from the Renault tie-up.

      If you’re American market-centric, the first three have already left, and Mitsubishi might be next, with a future in the Asian markets. Only Nissan will remain in the US market, but it will have to regain Japanese management control to succeed.

  • avatar
    Jeff S

    No, Datsun was changed to Nissan because that is what the corporate name in Japan is. The older Datsun’s were mechanically sound. Nissan’s quality took a nosedive after Renault. As for Mercury and Pontiac coming back they are dead. GM is on the way to becoming a Chinese company and it remains to be seen if Ford will stay Ford or will they eventually get bought out. Ford’s saving grace is the F series otherwise Ford would be gone. Isuzu is far from dead globally, Suzuki makes great motorcycles and marine engines, Daihatsu is owned by Toyota, and possibly Nissan might go away except they are more likely to get bought out.

  • avatar

    I heard that Renault is in a danger too, to the point that it my disappear. Unless Government loan is big enough and is not thrown into black hole.

  • avatar
    Jeff S

    Agree Renault is in trouble as well. There will be more mergers and less choice as more and more consolidation of manufacturing to gain lower costs and more efficiencies. I doubt most of these companies will go away more likely they will get acquired by other companies looking to expand their presence.

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