The leadership campaign Nissan reportedly ordered a series of sharp reductions in financial costs to cope with reduced sales and lower profits.
Reuters citing three anonymous sources who allegedly have competent information on the subject, reports that Japanese car manufacturer reduces nonessential costs, including unnecessary travel, sales incentives and promotions.
This step of the company’s management is trying to fix financial results Nissan for the remainder of the fiscal year (to end March 2020), but most likely, this policy will be maintained in the next year, the sources said.
On-site meeting involving three or four people who need to go personally, now there will be only one representative, while other meetings and dinners completely discarded or replaced with video conferencing. As one of the sources, Nissan would have to “save every single yen”.
The reduction in costs is in addition to Nissan on a two-day holiday for employees of the United States with 2 and 3 January, and the ban on staff travel on official business in the country.
Currently, Nissan has no shortage of money, but his recent actions show the extent of the crisis within the company – in April of last year they announced a big plan to increase sales and profit, but since then, prospects have deteriorated much more than expected. Operating profit in the second quarter fell 70 percent, prompting Nissan to lower projections for the full year to 11-year low.
Another source confirmed that Nissan currently has a lot of cash and a good credit line. These include money from the company’s activities in China, after several years of accumulated profits from transactions with joint ventures in China.