Nissan Motor will cut 9,000 jobs globally and reduce production capacity. The car company is thus trying to reduce its costs, amid declining sales in China and the US.
The crisis in the automotive field is spreading from one manufacturer to another. After Volkswagen or Audi, which announced layoffs, now Nissan is also going to lay off thousands of employees.
This decision comes as a result of declining sales, which is forcing the company to try to cut costs.
Nissan to cut 9,000 jobs
Nissan Motor will cut 9,000 jobs globally and reduce production capacity.
The company decided to cut costs as a result of declining sales in China and the US, it says Biziday.ro.
Japan’s third-largest automaker said it would cut costs by $2.6 billion. It also revised down its 2024 profit forecast by 70%.
This decline can also be attributed to the fact that Nissan Motor is unable to keep up with the growing demand for hybrid and electric vehicles. Rivals Toyota and Honda, on the other hand, have taken full advantage of this shift in consumer preferences.
CEO Makoto Uchida said the company did not anticipate the rise in popularity of hybrid cars in the US. In this context, several car manufacturers are facing declining sales. Of course, the main cause is competition from China’s electric and plug-in hybrid vehicles.
Other companies, such as Volkswagen and Stellantis, have already resorted to major reductions in activity or even restructuring.
The director waives 50% of his salary
The head of Nissan has announced that he will voluntarily give up 50% of his salary, starting this month. And other executives will also have to take pay cuts.
In addition, Nissan will shut down 20% of its production capacity. The company will modify the design model so as to reduce the term of development of a new car to 30 months.
In addition, it will sell 10% of its stake (34%) in Mitsubishi Motors and enter into a partnership with Honda to develop electric vehicles.
Source: www.promotor.ro
