Nissan News: Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent

[Drew Dowdell]

Yesterday we reported that Nissan may be cutting up to 10,000 jobs.... we were short by about 2,500. Nissan Motor Company's CEO Hiroto Saikawa said "The results were really more negative than we expected" in a financial briefing at Nissan Headquarters.  Operating profit was nearly wiped out, falling to just $14.8 million in the first fiscal quarter ending June 30th.  Operating margin shrank from 4.0 percent last year to barely 0.1 percent this year.  Global retail volume fell 6.0% to 1.23 million vehicles.

On the back of these poor results. Nissan has annouced job cuts of up to 12,500 worldwide as part of a plan to revive the company.  Of that, 6,400 job cuts are already underway with 1,420 jobs lost in the U.S.  An additional 6,100 job cuts are planned over the next 4 years. Most of the job cuts will be at plants that are working below capacity. 

In the U.S., Nissan is trying to move away from fleet sales and focus on increasing retail sales, with the goal of boosting retail sales by 100,000 units. 

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[ccap41]

Still more profits than Diamler... 😉

22 minutes ago, Drew Dowdell said:

In the U.S., Nissan is trying to move away from fleet sales and focus on increasing retail sales, with the goal of boosting retail sales by 100,000 units

I didn't know they sold retail. I thought they were a rental car company, exclusively. 

[riviera74]

The sins of excessive dependence on fleet sales have finally visited themselves on Nissan.  Apparently, they have not learned from Ford and GM that moving the metal kills profits AND resale values.  I do hope that Nissan has the guts to close underperforming factories as opposed to just cutting hours and shifts.

[Drew Dowdell]

16 minutes ago, riviera74 said:

The sins of excessive dependence on fleet sales have finally visited themselves on Nissan.  Apparently, they have not learned from Ford and GM that moving the metal kills profits AND resale values.  I do hope that Nissan has the guts to close underperforming factories as opposed to just cutting hours and shifts.

Apparently they are killing a plant in Indonesia and in India.

[Potluck]

They could close 100% of their plants and no one would miss them.

[daves87rs]

4 hours ago, Drew Dowdell said:

Apparently they are killing a plant in Indonesia and in India.

Not sure if that will be enough.....

[ccap41]

12 hours ago, Potluck said:

They could close 100% of their plants and no one would miss them.

Single mothers would still miss them. 

[Drew Dowdell]

18 minutes ago, ccap41 said:

Single mothers would still miss them. 

That's what Kia and Hyundai are for.

[regfootball]

10 hours ago, ccap41 said:

Single mothers would still miss them. 

wow.. did i just read that

on second thought i know a few that drive nissans hmmmmmmmm