Nissan upping cutbacks as execs predict end in less than two years

Nissan is reportedly expanding on its already announced cutbacks admits newly uncovered reports of it having less than two years to operate if a suitable investor isn’t found.

Job losses

Earlier this month, the automaker said it would be making 9 000 positions redundant and readjusting its profit outlooks as a result of sliding sales, predominately in the United States and China, while also introducing pay cuts for senior executives, including CEO Makoto Uchida.

“Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” a statement to AFP read.

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“Nissan will cut global production capacity by 20% and reduce its global workforce by 9 000.”

In addition to the cuts, a reduction in alliance partner Mitsubishi from 34% to 24% will be implemented while Renault is also said to be reviewing its interest despite assuring the future of the three-way alliance after a “rebalanced” partnership signing in December last year.

Saved by Honda?

The apparent dire situation has, however, been heightened by a newly released report by the Financial Times in the United States in which a pair of unnamed executives have claimed that the brand could fold within the next “12 to 14 months” if a new long-term partner doesn’t come forward.

Describing Nissan has being in “emergency mode”, one of the executives remarked, “we have 12 or 14 months to survive. This is going to be tough. And in the end, we need Japan and the US to be generating cash”.

While reports have since it alleged that its newly signed partnership with Honda for the developing of electric vehicle could turn matters around, the brand has refused to comment on the claims, telling carscoops.com, “we do not have any comment to share”.

In a related report, the publication states that six percent of Nissan’s workforce in the States will be retrenched, its output reduced by 17% and production at its major plants, the Canton facility in Mississippi and Smyrna plant in Tennessee, cut from five days to four until March next year.

South Africa seemingly safe

For the time being, operations outside the US seem unaffected with Managing Director for South Africa and Independent African Markets, Maciej Klenkiewicz, telling the media at the launch of the facelift Magnite in Cape Town that its procedures remain unaffected and that it will continue to roll-out new products while also investigating the introduction of a second product alongside the Navara for assembly at its Rosslyn Plant outside Pretoria as the replacement for the NP200.

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