Not only are European manufacturers going through one of the most complicated times in recent decades, in general, these are tough times for “old-fashioned” brands and chinese cars They have a lot to do with it.
Large companies like Stellantis and the Volkswagen Group are facing a tough crisis that, given what we have seen, has only just begun. Another name that must be added to this list is that of Nissan; the japanese firm just announced its results for the first half of fiscal year 2024 and have come accompanied by very bad news.
The CEO lowers his salary and the rest of the members of the board of directors follow his example
The numbers for Nissan, which is Japan’s second-largest automaker behind Toyota, are downright bad. During the first half of fiscal year 2024, Nissan has sold 1.60 million vehicles and that means that its sales volume worldwide has fallen by 3.8%, to which we must add that its profitability “has decreased.” “has been affected by higher selling expenses and inventory optimization efforts, particularly in the US, along with rising costs.”
In other words: Nissan has made much less money and have a problem. To solve it, you have decided to make changes with the aim of optimizing efforts and saving. “Faced with a serious situation, Nissan is taking urgent measures to change its performance and create a leaner and more resilient business capable of quickly adapting to changes in the market,” the Japanese company said.
As part of these measures, Nissan aims to reduce fixed costs by 300 billion yen (compared to fiscal year 2024), that is, by around 1.83 million euros at the exchange rate, as well as variable costs by 100 billion yen (compared to fiscal year 2024), about 610,000 euros at the exchange rate.
How do you intend to save that money? Mainly, with layoffs and cuts in production. “Nissan will cut global production capacity by 20% and reduce its global workforce by 9,000 employees,” Nissan says.
In addition to lay off 9,000 people around the world and cutting its production capacity by 20%, Nissan CEO Makoto Uchida has lowered his salary, according to Nissan, voluntarily. The rest of the executive committee directors will also earn less starting this November.
“CEO Makoto Uchida will voluntarily lose 50% of his monthly compensation starting in November 2024 and the other members of the executive committee will also voluntarily accept a salary reduction accordingly,” says Nissan.
On the other hand, Nissan has set out to “strengthen the competitiveness of products and guarantee growth.” This involves launching new electric vehicles in China and new PHEV and HEV (e-POWER) in the US.
Regarding the alliances that Nissan has with other manufacturers, what the brand says is that “it aims to reduce vehicle development time to 30 months and deepen collaboration with Renault Group, Mitsubishi Motors Corporation and Honda Motor Co., Ltd., while exploring more strategic partnerships in the areas of technology and software services.”
The CEO of the brand, Makoto Uchida, has valued these changes during the presentation of Nissan’s financial results: “Our objective is to improve the competitiveness of our products, which are fundamental to our success, and to put Nissan back on a path “As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans.”
For now, one day after the presentation of the financial results and the announcement of the savings measures, Nissan shares on the Stock Market have plummeted by 6.05%. The company’s shares have reached their lowest value since October 2020.
Source: www.motorpasion.com
