Tokyo, Japan – Nissan Motor Company has announced a net loss equivalent of US$2.8 billion, along with a new organization structure and further cost-cutting methods that will include eliminating 20,000 employees worldwide.
The loss was calculated for the third quarter of fiscal year 2008, which ends March 31, 2009.
Nissan announced that it will suspend its 2008-2012 midterm business plan, called Nissan GT 2012, but will retain commitments to quality and zero-emission vehicles. It plans to reduce labour costs in line with the decrease in revenues, with labour costs in high-cost countries reduced by 20 per cent. Bonus payments to the board of directors will be eliminated for fiscal year 2008 and, starting in March and until the situation clearly improves, salaries of board members and corporate officers will be reduced by 10 per cent, and those paid to managers and affiliate companies in Japan by five per cent.
Globally, staff will be reduced by 20,000 through fiscal year 2009, from 235,000 to 215,000, and the company will negotiate the implementation of a work-sharing scheme for staff workers, to be announced by the end of the fiscal year. Inventory will also be tightly controlled, with dealer inventory scheduled to be reduced by 20 per cent to 480,000 vehicles by March 2009; global production will be decreased by 787,000 units, a 20 per cent decrease from planned volume, through shift elimination, non-production days and shorter working hours.
Nissan said that joint manufacturing projects with Alliance partner Renault in Morocco and India will be revised; in Chennai, India, the joint plant will proceed with reduced ramp-up speed, while in Morocco, Nissan will suspend its participation in an industrial project near Tangiers.
The company will also revise its product portfolio, including the cancellation of select future programs; it will launch an average of ten all-new vehicles per year from 2009 to 2012, including an all-new, A-platform entry-car lineup and a dedicated all-electric vehicle. An ongoing, detailed review is intended to identify further opportunities within the Renault-Nissan Alliance, focusing on future investments in products, technology, support functions, and purchasing cost reductions.