The Japanese automaker has seen its net profit fall by 95% and is already starting to cut jobs and factories mainly overseas to overcome this massive crisis.
Nissan in turmoil. The Japanese car group, a Renault partner, has announced " very poor " results, according to the terms of its CEO Hiroto Saikawa for the second quarter of 2019.
A near zero profit for this second quarter
The profit Net melted like snow by nearly 95% to 6.4 billion yen (approximately € 52 million) while sales declined 12.7%, or 2 372 400 000 000 yen, over the period.
Except for China, where sales remain strong, all other markets are down sharply. Nissan is advancing a context of a general slowdown in the automotive market to explain this almost historical performance for the group.
" We have to admit that these numbers are below our estimates, but we think we can recover, " says Hiroto Saikawa. The builder will start by reducing costs by removing 12,500 jobs (7% of its workforce) and reduce production by 10% by 2023.
Major restructuring and a decrease in production to save the group
Eight production sites in Spain or Indonesia are already covered by these measures and Nissan plans to continue them in six additional plants. Several lines considered as little or not profitable will also be removed, mainly those manufacturing the compact cars of the manufacturer, shunned by consumers for the benefit of SUV.
Hiroto Saikawa also dumped on Carlos Ghosn, the former CEO of the Renault-Nissan alliance and today mired in cases of embezzlement of funds from the company for his personal use. He explains that the reforms initiated by his former superior were too expensive and the technological investments too important to meet the new governmental requirements.
Nissan still aims for 2019 net profit of 170 billion yen (-46.7%) and a turnover of 11.3 trillion yen (-2.4%) before returning to the path of growth after this austerity cure.
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