Nissan to severely cut costs due to slumping profits

Nissan to severely cut costs due to slumping profits

According to a report by Reuters, Nissan has enforced a cost-cutting initiative that will see its managed reduce non-vital spending. This comes as the Japanese carmaker is faced with less than desirable car sales as well as plummeting profits.

The latter is exhibited by the company’s financial results, with the latest being announced on November 12, 2019. Official documents revealed that during the first half of Nissan’s 2019 financial year ending September 30, operating profit stood at 31.6 billion yen – this is 85% less than what was recorded in the same period during its 2018 financial year.

Sources within the automaker told the media outlet that the directive will remain in place until the end of the company’s financial year at the end of March 2020, and will most likely continue into the next business year.

Among the prescribed methods to reduce costs include reducing the number of attendees at meetings, while other gatherings and dinners have been cancelled altogether, or replaced by video-conferencing. There is also an effective travel ban for staff in the United States, a market where sales have been particularly hard hit, one of the sources said.

It’s been a particular challenging year for Nissan, with its previous leader, Carlos Ghosn, announcing his departure from the company after being linked to a scandal that involved under-reporting his corporate salary. Since then, several top executives have left as well, with the latest being vice COO Jun Seki. A strained relationship with Alliance partner, Renault, further compounds the list of problems that Nissan is facing.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Simple. Just ask their Malaysian dealer Tan Chong to work their. They are very good at cutting costs and maximizing profit!

    Like or Dislike: Thumb up 3 Thumb down 1
  • Prince of the Earth on Dec 31, 2019 at 3:38 pm

    Very good move. Don’t be like Proton, losing billions per year every year for the past few years, still never cut costs at all.

    Since day 1 till today, still keep everyone of their 12,000 workers despite losing RM4 mil per day for few years.

    Then tax the rakyat and get billions of bailout, money which can be used to build hospitals and schools

    Like or Dislike: Thumb up 3 Thumb down 7
    • Calvin on Jan 01, 2020 at 11:11 pm

      Their 12,000 workers are selling up to 100,000 good cars a year. Don’t mind if they add another 12,000 on top of that.

      Like or Dislike: Thumb up 3 Thumb down 0
    • Prince, are you stuck in time? This is the year 2020, not 2015.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Nissan may realised now that they need Carlos Ghosn. The chance to have someone like him again is as slim as Japanese authority to get him back from Lebanon.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Celup King on Dec 31, 2019 at 4:25 pm

    They could start by hiring really good people from top to bottom. Capabled ones like Jun Seki couldn’t even stay for a month before leaving and this goes all the way down to their ETCM unker salesmen sotongs that blur-blur don’t how to sell cars against better competitors backed up by their equally blur sotong juniors whom only spends time in PaulTan bad mouthing the competition and not actually bothered to sell cars. Nissan should look into this fundamental problems or it will not succeed.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Rakyat Malaysia on Dec 31, 2019 at 4:32 pm

    That Carlos effect, under-reporting his salary. and that Najib effect, spent Billions way above his salary. that donation he kept sez Dont Know.

    Like or Dislike: Thumb up 0 Thumb down 1
    • Calvin on Jan 02, 2020 at 9:59 pm

      Agreed. Both saved their respective company/country but what do the people do? They kicked them out and insulted them as thanks for being their saviour. These icons are like the Messiah and same like that guy, the people did not cherished them and instead sacrificed them to appease their evil overlords.

      Like or Dislike: Thumb up 1 Thumb down 1
  • Carlos guilty & fled lebanon, now interpol wanted.

    Like or Dislike: Thumb up 1 Thumb down 1
  • dragonball on Dec 31, 2019 at 6:27 pm

    Well, as for honda, is worst than nissan. Don’t think honda is good quality and good service. Especially, honda has higher rate of breakdown. Not just some ppl complaint about gearbox for honda models, even fuel pump, driveshaft and etc got problem. Just like my accord 2.4 2017 always got problem including daytime running lights also fused. So don’t be so blind to buy honda.

    Like or Dislike: Thumb up 2 Thumb down 0
  • khalid on Dec 31, 2019 at 6:39 pm

    Finally he escape to lebanon
    next week probably he will explain “about real slumping”
    (met healthy Carlos face to face during his visit to tanchong in 2008)

    Like or Dislike: Thumb up 1 Thumb down 0
  • Ethan on Jan 02, 2020 at 12:16 am

    I wonder why they are doing so poorly. Maybe something to do with their jatco cvt issues

    Like or Dislike: Thumb up 1 Thumb down 0
  • tiadaid (Member) on Jan 02, 2020 at 10:43 am

    This is karma for what they did to Carlos Ghosn. The guy saved Nissan, but was dumped like a sack of shit because he dared to suggest merging Renault with Nissan.

    If it weren’t for Ghosn, the Jepunis would have gone bankrupt already!

    Like or Dislike: Thumb up 4 Thumb down 2
 

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