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Nissan to Eliminate 11,000 Positions, Close 7 Manufacturing Sites as Part of Recovery Strategy

Nissan Motor Company reveals significant restructuring strategy amidst declining earnings and sluggish international sales. Key components include the closure of seven factories and a global workforce reduction by 11,000 positions.

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Auto manufacturer Nissan Motor Company unveils a comprehensive restructuring scheme in response to...
Auto manufacturer Nissan Motor Company unveils a comprehensive restructuring scheme in response to slumping earnings and dwindling global sales. Key aspects of the plan involve the closure of seven factories globally and the elimination of approximately 11,000 positions from its international workforce.

Nissan to Eliminate 11,000 Positions, Close 7 Manufacturing Sites as Part of Recovery Strategy

Nissan's Restructuring Struggle: Nissan's in dire straits, sportin' falling profits and sluggish global sales, so they cooked up a rugged restructurin' plan.

This bad news includes shutterin' seven factories and slashin' 11,000 more jobs worldwide, bringin' the total job losses to around 20,000, followin' a previous 9,000-job cut announcement. Nissan's aimin' to slim down from 17 factories to 10, simplifyin' its supply chain by slashin' 70% of the parts it uses, hopin' to boost efficiency. New CEO Ivan Espinosa, fresh in the saddle, called the past year a "wake-up call" for the company.

High costs and skinny earnings got 'em pushin' for significant changes. As part of Nissan's quest for financial recovery, they expect to slash costs by approximately 500 billion yen.

For the financial year endin' in March, Nissan's operating profit plummeted 88%, fallin' to 69.8 billion yen (around $472 million). They're predictin' a major operating loss of 200 billion yen in the first quarter, CFO Jeremie Papin said.

Nissan's facein' a helluva storm. Sales have plummeted in the U.S. and China, while plans for a merger with Honda have stalled, adding to their strategic woes. Add to that pressure from U.S. tariffs and harsh competition from Chinese EV makers, and things are lookin' rough.

This restructurin' gig's one of Nissan's biggest changes in yonks, but the journey ahead remains rocky and expected to be lengthy.

Now, y'all know the drill – Nissan's in a world of hurt, but they're fightin' back with a flurry of strategic changes in a bid to bounce back.

The Nitty-Gritty

Nissan's Problems

  1. Slippin' Sales and Financial Losses
  2. Nissan reported a net loss of ¥670.9 billion (about $4.5 billion) for the fiscal year endin' March 2025, illustrated the urgency for restructurin'[3].
  3. They aim to achieve total cost savings of ¥500 billion (around $3.39 billion) compared to fiscal year 2024[3].
  4. U.S. Tariffs
  5. Although not specifically mentioned in the recent restructurin' announcements, U.S. tariffs generally impact global automakers by jackin' up import costs and affecting profitability[4].
  6. Chinese EV Competition
  7. Nissan grapples with fierce competition from Chinese electric vehicle (EV) manufacturers, which are rapidly capturin' market share worldwide[2].
  8. Potential Merger with Honda
  9. There's no recent or specific mention of a potential merger between Nissan and Honda in the search results. However, partnerships and alliances are gainin' traction in the auto industry to claw back from challenges such as EV competition and financial strain.

Nissan's Moves

  1. Workforce Reduction
  2. Nissan plans to shed about 20,000 employees between fiscal years 2024 and 2027, includin' a previously announced job cut of 9,000[1][2].
  3. Factory Closures
  4. The company intends to close seven factories, axin' its number of auto plants from 17 to 10. This includes closures in Japan, although specific locations weren't disclosed[2][3].
  5. Platform Reduction
  6. Nissan wants to slash the number of vehicle platforms from 13 to 7 by fiscal year 2035, targetin' production streamlinin' and efficiency improvements[3].
  7. Partnerships and Collaborations
  8. Nissan will harness partnerships, like the one with Renault SA in Europe and Dongfeng Nissan in China, to adapt to market demands and up the competition[2].

All in all, Nissan's restructurin' plan focuses on craftin' a leaner, more durable business through substantial cost reductions, optimizin' production, and leveragin' strategic partnerships to combat ongoing industry challenges. However, tariffs and potential cooperation with Honda aren't explicitly addressed in the current restructurin' initiatives.

  1. Nissan, striving for financial recovery amidst falling profits and sluggish global sales, aims to boost efficiency by reducing the number of factories from 17 to 10, thus streamlining the supply chain and cutting 70% of the parts used.
  2. In a bid to strengthen its position against fierce competition from Chinese electric vehicle manufacturers, Nissan plans to work closely with strategic partners, such as Renault SA in Europe and Dongfeng Nissan in China, to adapt to market demands and remain competitive in the finance, transportation, automotive, and business sectors.

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