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Nissan to cut 20,000 jobs and forecasts loss

Discussion in 'Political Zone' started by Kangaroo, Feb 9, 2009.

  1. Kangaroo

    Kangaroo Active Member

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    http://finance.yahoo.com/news/Nissan-to-cut-20000-jobs-and-rb-14293321.html

    Outside the job cuts is these counter measures from the article linked

    COUNTER-MEASURES

    With the triple blow of a credit crisis, recession and a strong yen making life tough for Japanese automakers, Nissan outlined steps to save cash and focus on a healthy balance sheet.

    Specifically, Nissan said it would aim to return to positive free cash flow next business year even as it assumes the global vehicle market will shrink to 55 million units in 2009 from 62 million last year, and for the dollar to average 90 yen.

    The efforts will focus on three areas: recovering profit, preserving cash and pursuing deeper savings with Renault, details of which would be outlined in three months.

    To that end, Nissan said it would cut labor costs by a fifth in high-cost regions such as Japan, the United States and Europe, including by reducing high-ranking officials' salaries by 10 percent. No bonus will be paid to directors this year. Nissan will also negotiate work-sharing schemes.

    Nissan plans to reduce capital spending this year by 21 percent to 384 billion yen, and a further 14 percent in 2009/10 to 330 billion yen or lower if necessary, including by suspending its participation in a factory project led by Renault in Morocco.

    "All these actions and countermeasures are not merely short-term fixes," Ghosn told a news conference in Tokyo.

    "They will enable our company to recover and secure a more competitive position that will benefit Nissan long after the current crisis subsides."

    Ghosn said he was putting Chief Operating Officer Toshiyuki Shiga in charge of functional operations, mirroring a structure introduced at Renault in October with COO Patrick Pelata at the top. Both will continue to report to Ghosn.

    SINKING VALUE

    Shares in Japanese automakers have tumbled cross the board in the last year but Nissan has fallen harder than Toyota and Honda, which have healthier balance sheets and liquidity positions.

    Rising debt at Renault, in which Nissan holds 15 percent, has also raised worries about any knock-on effects on the Japanese automaker.

    Nissan's shares have dived more than 70 percent in the last 12 months, while Toyota and Honda are down 47 percent and 30 percent. Nissan has shed $12 billion in market value since Ghosn arrived from Renault to rescue Nissan in 1999.

    Nissan's shares are the worst performer in the domestic auto sector in the year to date, falling 13 percent against a 7 percent rise in Tokyo's transport sub-index (-ITEQPT - News). The stock ended down 5.8 percent at 261 yen ahead of the results.
  2. BrAinPaiNt

    BrAinPaiNt Bad Santa Staff Member

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    That will teach them...they should have stuck with the name Datsun because those used to be some quality cars...quality cars for the study of rust.:D
  3. Kangaroo

    Kangaroo Active Member

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    LOL there is some truth to that I owned a Datsun once :D

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