Nissan Motor is reportedly prepared to cut 20.000 jobs, mostly in Europe and developing markets. The news was anticipated by the Japanese agency Kyodo news on Friday morning and led to a sharp decline in the Nissan stock on the Tokyo Stock Exchange (-2,5%) but also some Renault shares in Paris (-3,8% after a fall to -4,4%). When asked, Nissan did not comment on the article published by Kyodo news.
The possible cost containment measure is aimed at straightening the accounts after the dizzying collapse in car sales due to the Coronavirus pandemic and comes just a few days from the new strategic plan that the Japanese automaker will present on May 27.
In the midst of the coronavirus emergency, the project should allow greater synergies between the three partners and mark a starting point after the events involving the former number one of the Nissan – Renault alliance, Carlos Ghosn. "The Alliance press conference will take place on 27 May at 9 am, Paris time zone," Renault announced in recent days. Due to the ongoing pandemic, the presentation will take place online and will serve to take stock of the progress of the activity” of the two groups. The two companies announced a reorganization of the alliance in January, when the Italian Luca De Meo arrived at the helm of Renault. Details should now arrive on how it is proceeding. The following day, May 28, Nissan will release full-year 2019-2020 data (the fiscal year ended March 31). On that occasion, the new recovery plan should be presented which, in fact, would also include personnel cuts. Renault will also present its plan on May 29 .
Nissan's difficulties also date back to before the spread of the Covid-19 epidemic with a drop in revenues and profits that pushes the Japanese group, now, to strengthen its alliance not only with Renault but also with Mitsubishi to put into practice the strengths – regional and technological – of the three groups are in common. The situation today has worsened. The French economy minister in recent days has pointed out that Renault needs urgent aid to stem the collapse of the car, while Mitsubishi earlier this week published an 89% drop in its sales.
According to the advances reported by Reuters, Nissan's intentions aim at a downsizing of about 1 million cars on its production targets, with greater expansion on the US and Chinese markets. In sight would be downsizing in Europe and a focus on SUVs and commercial vehicles.
