1 week Ago By Derek Fung
With a net loss of ¥9.3 billion ($92.5 million) in the quarter just gone by, and operating profits down 85 per cent compared to this time last year, has announced a series of measures to "stabilise and right-size the business".
or signup to continue reading The company will , which will result in the . By reducing its manufacturing capacity, Nissan is hoping to match global production with the 3.5 million vehicles it expects to sell in the 2026 Japanese financial year.
To help clear its ballooning inventory, Nissan has had to employ heavy incentives in the US, and has even asked dealers to sell vehicles at a loss. In a show of solidarity with its shrinking workforce, CEO Makoto Uchida will take a 50 per cent pay cut, while other board members will "voluntarily take a pay reduction". Additionally Nissan will reduce general and admin costs, and raise cash by selling off some assets.
To this end the automaker has from 34 per cent to around 24 per cent, a move that will boost Nissan's coffers by around ¥68.6 billion ($680 million). With Nissan's stake in Mitsubishi now under 33 per cent, it no longer controls the three-diamond brand, and loses the automatic right to appoint to its CEO and a number of its board members.
Nissan took effective control of Mitsubishi in 2016 when the latter was plunged into crisis when it admitted to falsifying domestic market fuel economy figures all the way back to 1991. Since then the two brands have worked closely on new models, with Mitsubishi taking the lead on ute development, resulting in the latest , and using shared platforms from the Renault-Nissan-Mitsubishi Alliance for new models, such as the latest . By reducing its financial stake in Mitsubishi, the financial ties between the members of the Renault-Nissan-Mitsubishi Alliance are now looser than ever.
In 2023, Renault agreed to from 43 to 15 per cent, as well as voluntarily limit its influence over the Yokohama-based automaker. Despite this, Nissan has pledged to "deepen collaboration" with Renault and Mitsubishi, as well as Honda, with whom it is . Despite cuts elsewhere, Nissan says it announced in March as part of its .
Proritised models include electric vehicles for China, and e-Power hybrids and plug-in hybrids for the US. Like other foreign manufacturers, Nissan's sales and market share have been hurt in China by the surge in demand for EVs from local brands. In North America, the automaker doesn't a hybrid to compete with the popular or .
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