Nissan pulled to the bottom

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Japanese car manufacturer Nissan was in deep crisis. Amid a record fall in profits, the company decided to go for layoffs. About it reports Bloomberg.

Nissan profit for the last quarter fell by 99 percent, although analysts had predicted 66. In the worst situation, the company was only during the global crisis a decade ago. In this regard, the Japanese manufacturer took the decision to dismiss the order of 12.5 thousand employees. Although in may, Nissan reported a planned reduction of 4.8 thousand employees. Now layoffs in the manufacturing will affect one-tenth of the workers, said the Agency. Wednesday, July 24, Reuters citing a source reported a reduction of 10 thousand people.

At the end of last quarter, revenue fell 13 percent to 2.37 trillion yen. It was the sharpest drop since the global financial crisis of 2008. Car sales fell 6 percent to 1.23 million vehicles. To stabilize the situation until 2022, Nissan has decided to reduce production capacity and product line by 10 percent, so the Japanese manufacturer plans to increase the competitiveness of their cars. Bloomberg indicates that all these actions are similar to those that the company undertook in the early 2000s and in 2008 to get out of the crisis.

Analysts attribute the problems of the Japanese manufacturer as the General decline of the automotive market, and with a number of scandals in which the company was involved. In particular, we are talking about the arrest of the head of the company Carlos Ghosn. In 2018, it was dismissed from office due to allegations of financial fraud. Top Manager denied the allegations and explained to the prosecution of a conspiracy against himself by the management of Nissan.

The company is going to emerge from the crisis due to the growth of sales in China, Latin America and other emerging markets. The emphasis is on the sedans and electric cars. In the domestic market, the Japanese want to promote a modernized Skyline.

Video, photo All from Russia.

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