Japanese multinational automobile manufacturer Nissan’s performance is plummeting with the latest fiscal quarter’s unsatisfactory sales as inventory and costs continue to rise. The company has declared that no dividends will be paid out and has cut over 9,000 jobs considering the manufacturing company’s poor performance. However, Chief Executive Makoto Uchida hasn’t made it clear which regions are most likely to be affected by this decision.
Uchida announced he would reduce his monthly salary by 50 percent to accept accountability for the poor outcomes while assuring that an improvement is on the way. In the most recent quarter ending in September, Nissan incurred a loss of 9.3 billion Yen (USD 60 million), contrasting with the profit of 190.7 billion Yen achieved in the same quarter last year. The Japanese automotive announced that it will it is promptly appointing a chief performance officer to execute turnaround decision-making. The official is expected to start working from next month.
Nissan Motor Corp revealed a worldwide workforce cut of 9,000 employees, accounting for roughly 6 percent of its over 133,000 staff, and also a strategy to reduce global production capacity by 20 percent.
Uchida took responsibility for not catching up to the world’s changing trends including the raw materials’ rising costs. He informed the journalists, “Nissan will reorganize its operations to be more efficient and robust.” Nissan vehicles struggled to achieve strong sales in competition with Ford, Toyota, and Tesla in the US, which is among the most profitable automotive markets.
The company hesitated to provide a net profit prediction, referencing uncertainty. It assured that it would provide a profit prediction at the earliest opportunity. Nissan aims to improve investment efficiency and product competitiveness by forming strategic alliances with Renault Group, Mitsubishi Motors Corporation (MMC), and Honda Motor Co., Ltd.
Previously, Nissan anticipated a yearly profit of 300 billion Yen (USD 1.9 billion). Nissan now anticipates selling 3.4 million cars globally in the fiscal year ending March 2025, a decrease from a prior estimate of 3.65 million vehicles. The updated figure is roughly equivalent to what Nissan sold in the previous fiscal year.
The company reported a consolidated net revenue fall from 79.1 billion yen to 5.98 trillion yen, while consolidated operating profit dropped from 303.8 billion yen to 32.9 billion yen, indicating an operating profit margin of 0.5%. The net income amounted to 19.2 billion yen.
