• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: The Car That Started a ’70s Car Design Craze
  • Inflation Reduction Act Paying Off as Battery Makers Invest Billions in U.S. Factories
  • Back in Production, Ford Again Raises Pricing for F-150 Lightning.
  • First Look: 2024 Hyundai Sonata
  • Despite Two Decades of Warnings, Distracted Driving Remains a Major Problem
  • Treasury Dept Ruling Expected to Cut EV Tax Credits
  • Sen. Manchin Threatening to Sue Over New EV Battery Rules
  • Ford Bolsters EV Supply Chain with $4.5B Nickel Processing Plant
  • Unified UAW Talks Tough Before Contract Talks with Detroit Three
  • Faraday Future May Have One: Production Begins
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Nissan Rogue Platinum AWD
    • A Week With: 2023 Kia Soul GT-Line
    • A Week With: 2023 Ford Maverick Tremor
    • A Week With: 2023 Volkswagen ID.4 AWD Pro S
    • A Week With: 2023 Infiniti QX80
    • A Week With: 2023 Genesis GV80 Prestige 3.5 Turbo
    • First Drive: 2024 Dodge Hornet R/T
    • First Drive: 2023 Dodge Hornet GT
    • First Drive: 2023 Genesis Electrified GV70
    • First Drive: 2023 Nissan Ariya e-4orce AWD
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Nissan Plans for Restructuring Call for $2.8B in Cost Cuts

        Nissan Plans for Restructuring Call for $2.8B in Cost Cuts

        Japanese automaker to reveal plans May 28.

        Michael Strong
        Michael Strong , Managing Editor
        May 13, 2020
        Nissan CEO Makoto Uchida said the company must take further action to turn the company around. That plan is set to be revealed May 28.

        Nissan’s been struggling with sliding sales, bloated costs and management issues for much of the past three years; however, officials are preparing to reveal their restructuring plans to revive the company May 28, starting with a move to cut $2.8 billion in fixed costs.

        The Japanese automaker had been on the ascent for many years as former Chairman and CEO Carlos Ghosn aggressively looked to expand its sales, especially in the United States and China. However, much of that strategy has come unraveled since he was essentially deposed by Nissan’s senior management.

        The areas set to see big cuts, according to Bloomberg News, includes marketing and research. However, nothing has been finalized yet as the company’s board has not given final approval to the plan, Bloomberg reported. Publicly, officials have been mum on what’s in the plan.

        (Nissan officials predict first full-year loss in a decade.)

        “Nissan will announce a revised mid-term plan along with fiscal year 2019 financial results on May 28,” said Azusa Momose, a spokeswoman for Nissan, told Bloomberg. “We do not have any further comments on this subject.”

        Nissan’s struggles took off with the arrest of former Chairman Carlos Ghosn for financial malfeasance. He fled to Lebanon.

        The company’s problems started shortly after Ghosn was arrested after landing in Japan, accused of financial malfeasance. From jail, he maintained his innocence for more than a year. However, after repeated attempts to free him failed, he escaped to late last year.

        He was replaced by Hiroto Saikawa, the CEO at the time of Ghosn’s arrest. However, he was unable to stem the tide of rising costs and falling sales, and ultimately was found to be guilty of some malfeasance as well. He was then replaced by Makoto Uchida as CEO, who is largely thought to be the driver of this turnaround plan.

        In addition to cutting back the marketing budget, the company is expected to mothball its low-cost Datsun line, which was reintroduced several years ago. The brand produced inexpensive, no-frills vehicles for markets like India and Russia, where vehicles like that are popular.

        Uchida hasn’t just been twiddling his thumbs since getting appointed to the big chair last year. Uchida, who headed up the automaker’s operations in China before taking over as CEO, is known for looking at things from a global perspective. His plans to expand globally appear to be less grandiose than those

        Hiroto Saikawa, Ghosn’s replacement as CEO, led the effort to oust him. Saikawa later resigned after he misappropriated funds.

        of the big-thinking Ghosn, especially with a slowing cash flow heightened by the coronavirus.

        (Nissan may cut vehicle production by 1M as part of restructuring.)

        Those “less grandiose” plans include cutting production of as many as 1 million vehicles, including the aforementioned Datsun line-up. Nissan’s plans for restructuring through to March 2023 are based on annual sales of 5 million cars by then — numbers lower than either of Uchida’s predecessors, who wanted to get to as many as 8 million vehicles sold globally.

        To do that, it’s likely Nissan will need to shutter as many as four plants around the world. No selections have leaked out, but the automaker has already been eliminating jobs ahead of the announcement later this month. In addition, the company will be looking to scale back operations in place like India, Vietnam and Thailand to focus on competing profitably in the U.S., China and its home market, Japan.

        Part of the effort to energize the results in those three markets, according to reports, is to strengthen Infiniti, the company’s luxury brand, which is generally looked upon less favorably than its Japanese counterparts, Lexus and Acura.

        Nissan’s restructuring plan reportedly focuses energizing sales in China, Japan and the U.S.

        In the markets it plans to scale back, it will rely on its Alliance partners Renault and Mitsubishi to carry the load. Clearly, Renault will handle Europe while Mitsubishi has a strong presence in the aforementioned Asian markets, Bloomberg reported.

        On top of all this, the automaker is – like all the others – struggling through the reduction in sales due to the coronavirus pandemic. The result is that the Japanese automaker had to shift from predicting a profit of about $795.3 million, or 85 billion yen, to a loss of $419.7 million for its 2019 fiscal year. Additionally, the company expects to post a net loss of as much as 95 billion yen, or $888.9 billion, compared with a previous forecast for 65 billion yen, or $608.2 million profit.

        (New Nissan CEO aims to “regain trust,” “restore business performance.”)

        However, the company is beginning to see some bright spots on the other side of the pandemic courtesy of China. Nissan’s sales volume in China climbed 1.1% to 122,846 vehicles in April.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: The Car That Started a ’70s Car Design Craze

        Today
        Ultium Battery Pack

        Inflation Reduction Act Paying Off as Battery Makers Invest Billions in U.S. Factories

        Yesterday
        2022 Ford F-150 Lightning - muddy on trail

        Back in Production, Ford Again Raises Pricing for F-150 Lightning.

        Yesterday

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: