drastic restructuring plan expected at Nissan

drastic restructuring plan expected at Nissan

Nissan is preparing to decide in the thick of it. Renault’s partner is said to be looking to cut fixed costs by 300 billion yen a year, or around 2.6 billion euros, as part of a three-year restructuring plan due to be released on May 28. Citing anonymous sources, ‘Bloomberg’ said the cost cuts would affect areas such as marketing and research while the Datsun brand, aimed at developing economies, is expected to be phased out. An additional production line should also be closed while the Japanese manufacturer would like to focus on its main markets which are the United States, Japan and China.

The coronavirus crisis put most automakers in trouble, but Nissan’s sales and profits were already down before the epidemic, which forced him to abandon the aggressive expansion plans of former Carlos Ghosn CEO of the Renault-Nissan alliance.

The plans have yet to be validated by Nissan’s board of directors and may change, the agency said. The extent of the restructuring charge linked to this program is also still being assessed. “Nissan will announce a revised medium-term plan and fiscal 2019 financial results on May 28,” said Azusa Momose, spokesperson for Nissan. “We have no further comments on this.”


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