Nissan Motor Company is taking urgent measures to address challenges in key markets, including a 20% reduction in global production and laying off 9,000 employees. The company is working on lowering sales, administrative expenses, and product costs, as well as optimizing its asset portfolio. As part of cost-saving measures, CEO Makoto Uchida announced a voluntary 50% reduction in his monthly salary, with other executive committee members also agreeing to voluntary pay cuts.
Nissan plans to reduce its stake in Mitsubishi Motors from 34% to approximately 24%. The decision comes amid poor sales performance in the U.S. and China markets. Nissan reported a 1.3% year-on-year decline in sales revenue for the first half of its fiscal year, amounting to 5.98 trillion yen (around $38.85 billion). Operating profit dropped by 90.2% to 32.91 billion yen ($210 million), while net income fell 93.5% to 19.22 billion yen ($125 million).
In light of these figures, Nissan has revised its full-year projections. It lowered its revenue forecast from 14 trillion yen ($91 billion) to 12.7 trillion yen ($82.5 billion), and its operating profit forecast from 500 billion yen ($3.25 billion) to 150 billion yen ($970 million). The company's global sales target has also been cut from 3.65 million to 3.4 million vehicles.
Reports indicate that hybrid vehicles are gaining popularity in the U.S., yet Nissan has not ventured into this market segment. In China, Nissan faces intense competition from electric vehicles and lacks an adequate response to maintain sales.
Nissan is committed to implementing immediate measures to improve operational efficiency and adaptability in response to market changes. Following the announcement of job cuts and production reductions, Nissan shares plummeted over 10% on the Tokyo Stock Exchange and are currently down 6.63%, trading at 382.8 yen per share, with a market capitalization of 1.4254 trillion yen (approximately 66.7 billion RMB).
Additionally, Nissan reported its October 2024 sales performance in China. The combined sales of passenger and light commercial vehicles totaled 61,170 units, including Infiniti imports. Dongfeng Nissan sold 57,323 units, while the light commercial vehicle segment sold 3,847 units. From January to October 2024, Nissan's cumulative sales in China reached 558,168 units.
