Blame Carlos Ghosn and his failed strategies.
Nissan is preparing to take emergency measures to reduce costs – the current leadership plans to conduct mass layoffs, to close two plants and cut range. Blame the ex-head of the brand Carlos Ghosn and his failed strategy that left the company a legacy.
As told to Reuters by two sources at the plant, the reduction will affect no less than 4300 employees. All these steps are aimed at reducing costs – by 2023, the company intends to reduce them to $ 4.4 billion.
Also under the program “optimize” and get a car. The least successful model is likely to be removed from production, and for the others will reduce the number of configurations. The management also plans to abolish the jobs in the head offices in the USA and Europe, to cut the budget on advertising and marketing.
The source added that the current situation in the company is horrible, the management are only two options: either to decide on drastic measures or die.
Under the leadership of Carlos Ghosn, the company began to rapidly gain momentum in the markets of India, South Africa and Southeast Asia, spending significant funds for the supply of vehicles, and for promoting among buyers. Now the head of the company found that many of these models do not fulfill the sales plan, and about 40 percent of the production capacity not used at full capacity or not being used at all.
Last week the former head of Nissan, Carlos Ghosn, has predicted the company’s imminent bankruptcy. According to him, the current business model from a Japanese automaker have a maximum of two to three years, after which it will cease to exist.