Nissan Latest: Regional Offices to Close As Cost-cutting Marches On
Nissan’s attempt to slash costs amid a protracted sales and profit slump will mean the end of two regional offices in the United States.
The news comes after a slew of measures aimed at reining in spending, the most recent of which was a buyout package offered to U.S. employees over the age of 52. With two years of declining sales on its ledger, the automaker figures fewer vehicles sold should result in fewer offices.
'Do or Die': Nissan Buying Out U.S. Employees As Cost-cutting Spree Continues
In an effort to reduce expenses and lower its headcount, an embattled Nissan is offering buyouts to its U.S. employees.
It’s rumored that Nissan plans to eliminate thousands of white-collar jobs and shutter several global factories as part of its effort to improve the company balance sheet. Going into 2020 weak and not expecting to make any money, the automaker is turning its focus to restructuring for at least the next 24 months.
“To adapt to current business needs and improve efficiencies, Nissan will offer voluntary separation packages to eligible U.S.-based employees,” the company said in a statement.
Volkswagen Boss: Move Faster, or Go the Way of a Second-rate Phone Maker
Nokia isn’t having a good day, what with Volkswagen CEO Herbert Diess likening it to an Edsel or Tucker. The VW chief contrasted the phone maker with sales leader Apple when discussing his company’s future, claiming VW will need to move much faster if it’s to stay at the front of the pack.
To further this goal, some things will need to move to the back burner.
Triage Time, Part II: Nissan Doubles Down on Cash-saving Efforts, Report Claims
With sales and profits nowhere near where it would like them to be, Nissan is reportedly clinging to every penny in its possession. Following an earlier report of a two-day furlough of U.S. staff scheduled for the first week of the new year, Reuters reports that savings will now be achieved wherever the company can find them.
Don’t expect to see many executives or staff winging their way across the globe in the coming months.
Nissan to Shed Plants?
As it moves forward with efforts to streamline its operations and reverse a dismal financial situation, Nissan is reportedly mulling the sale of two of its European plants. One cranks out Infiniti vehicles for a region soon to be devoid of new Infiniti vehicles.
Along with these possible cost-saving moves, the automaker could be thinking of dropping its overseas Datsun brand.
Ford and GM Prep for Economic Hardship
With another global recession looming on the horizon, executives at General Motors and Ford are busy touting the merits of being prepared. On Tuesday, the financial heads of both automakers were present at a J.P. Morgan Conference in New York to explain the steps being taking to mitigate economic disaster.
While financial hardship is not yet a guarantee for the United States, the ongoing trade war with China has impacted the cost of doing global business. Likewise, most sizable automotive markets are either underperforming or have surpassed peak growth levels. Depending upon the severity of the anticipated recession, GM claims its “downturn planning” could include postponing non-essential capital expenditures and shifting toward lower-priced automobiles.
Volvo Needs to Cut Costs by $214 Million, Profit Declines in First Half of 2019
Volvo is planning on reducing fixed costs by 2 billion Swedish kronor. That sounds like a lot, but it’s only about $214 million. While not the largest restructuring plan currently being conducted within the automotive industry, it’s a significant chunk of change for a company the size of Volvo Cars.
The manufacturer is claiming that market pressures are trimming down profits. As a subsidiary of China’s Zhejiang Geely Holding Group, much of Volvo’s business is being impacted by the trade war between the Land of Liberty and People’s Republic. While giving a listen to the automaker’s latest financial report earlier in the day, we learned Volvo operating profit dropped by about 30 percent over the first half of 2019. At least some of that can be attributed directly to its Chinese ties.
Report: Amid Cost-cutting Spree, GM Looked at Unloading Its Global HQ
General Motors’ Renaissance Center headquarters dominates the Detroit skyline, announcing America to Canadians even before they reach Windsor. A symbol of industrial might and the big business of autos, the 5.5 million-square-foot complex has been home to the biggest of the Big Three since GM acquired the property in 1996.
According to a new report, GM’s recent streamlining push saw company brass attempt to sell the property.
Hackett's Axe Falls in Earnest As Ford Announces 7,000 Salaried Cuts
The steep white-collar job cuts that simmered on Ford’s back burner for a year have come into clear focus. In a letter to employees on Monday, CEO Jim Hackett announced the elimination of 7,000 salaried positions — some 10 percent of the automaker’s global workforce.
The move, part of Ford’s $11 billion restructuring plan, also calls for a 20-percent reduction in the company’s upper tier management. In the U.S., much of the pain will start being felt this week.
Musk Picks Up the Axe Again, Cuts Sales Staff in Major U.S. Markets
The torturous wait to learn if Tesla’s job cuts would come to their doorstep ended in April for dozens of members of the automaker’s sales team. As it embarks on a cost-saving plan, Tesla has let go numerous staff members and sought to close the bulk of its storefronts after moving the company’s buying process online. Last quarter’s grim deliveries report didn’t paint a rosy picture for the company, suggesting more cost-cutting to come.
According to Bloomberg, the axe fell in three U.S. cities last week.
Report: Cost-conscious Ford to Slash Russian Operations
The Blue Oval brand stands to seriously pare back its Russian presence, a new report claims, with two of the automaker’s three assembly plants rumored to close. Ford entered into a joint venture in the country in 2011, partnering with Russia’s Sollers. The two recently reached a new agreement, Sollers claims, but details remain scarce.
One person with knowledge of the pact claims Ford will cut its passenger car operations, leaving only its commercial vehicle business. More market share for the resurgent Lada, it seems.
Jaguar's Sexy XF Sportbrake Looks Doomed in the U.S. As Brand Enters Triage Mode [UPDATE]
The American public’s rapid conversion to the Church of Crossover caught longtime car peddler Jaguar off guard, forcing the British brand to mull desperate measures to stay profitable. And not just in this market, either.
Jaguar is currently an anchor for Jaguar Land Rover, dragging the automaker’s finances into the red, and Indian parent Tata isn’t happy about it. It wants a quick turnaround. For Jaguar’s U.S. arm, that means less choice for future customers.
As Ford Starts Trimming Down South, a Familiar-looking Truck Will Have to Die
Ford’s attempt at streamlining its global business is already well underway in Europe and the United States, but those regions aren’t the only locales to see cuts. Announced Tuesday, Ford Motor Company will bring the axe down in South America.
Brazil, once home to Henry Ford’s utopian rubber town, stands to lose local production of three vehicles, including two truck models that look oddly familiar. Almost like something the author’s neighbor drives. Also in Ford’s plan: the scrapping of its heavy commercial trucks.
GM Begins Axing 4,000 Salaried Workers
Last Friday’s whisperings of a “Black Monday” panned out, with General Motors announcing the elimination of roughly 4,000 salaried workers — part of a preexisting pledge to reduce its North American workforce by 15 percent.
Pink slips are in the process of being handed out, an unwanted delivery that should take two weeks to complete. In total, GM hopes to cull 8,000 salaried workers and reduce its executive ranks by 25 percent.
Report: 'Black Monday' Looms for GM Employees
General Motors’ cost-cutting plan could hit home in a big way for salaried employees next week.
While the automaker has already begun cutting its salaried workforce, part of a broader streamlining push that includes plant closures and model discontinuations, sources claim Monday could bring widespread pink slip action.