The Japanese car manufacturer Nissan, in financial difficulty, plans a reduction of 9,000 jobs worldwide and a 20% reduction in its production capacity. The brand, hit by a decline in sales in several key markets, aims to turn around its financial performance and strengthen its resilience to adapt to current challenges.
Nissan revises its financial targets downwards
Nissan published worrying quarterly results this week, revealing an unexpected net loss of 9.3 billion yen (56 million euros) for the period from July to September. The group, which was still hoping for a profit of 49 billion yen according to market forecasts, is being hit hard by the drop in its global sales.
The turnover amounted to 2.986 billion yen (18 billion euros), a decrease of 5% compared to the previous year. Faced with this critical situation, Nissan has revised its objectives for the 2024-2025 financial year, with revenue expectations reduced to 12,700 billion yen, compared to 14,000 billion initially planned.
Makoto Uchida, executive director of Nissan, explained at a conference that the net profit forecast for the current year is suspended, with the amount to be adjusted according to the costs associated with the turnaround plan. “ Nissan Takes Urgent Steps to Create a More Responsive, Resilient Business », Specified the group in a press release, thus justifying the drastic reorganization of its workforce and operations.
Strategic markets in sharp decline
Nissan's situation is becoming more complicated in several of its most strategic markets. In the United States, its sales fell by 2.3% with only 212,000 vehicles sold between July and September. In China, another major market for the manufacturer, the figures are even more alarming, with a drop of 13% over one year, representing 172,000 units sold. In Europe, Nissan sales are also on a downward trajectory, with a drop of 5.9%, totaling 80,000 vehicles.
Faced with these setbacks, Nissan took radical decisions to reduce its costs. The company plans to reduce its fixed costs by 300 billion yen and its variable costs by 100 billion yen by the end of the 2024-2025 financial year. This includes a significant reduction in selling, general and administrative expenses, and optimization of investments, particularly in research and development. The objective is to refocus the company's resources while maintaining healthy cash flow, thus guaranteeing its sustainability despite a difficult market environment.
Nissan faces complex challenges in a sluggish global automotive environment, marked by declining sales and strong competitive pressure. With this restructuring plan, the manufacturer hopes to regain financial balance and a strengthened strategic positioning. The success of this recovery is based on its ability to reduce its costs and adapt its model to constantly changing markets.
