Nissan is taking further steps in the context of global crisis
New organization to deal with economic slowdown
Nissan Motor Co., Ltd.. (NML) today announced stimulus measures to improve performance of the company facing the economic crisis and current financial. The company also unveiled a new organization that will allow Nissan to meet current challenges and support its future direction.
New stimulus
Despite measures taken in 2008 to respond to the global crisis, the deterioration of the situation requires the implementation of new changes in the strategy of cash management as well as the structure and investment plans society. These measures of response to the crisis include the following:
- In an effort to focus on the stimulus, our medium-term strategic plan (2008-2012), Nissan GT 2012 is suspended, without sacrificing commitments in matters of quality and production of zero-emission vehicles.
- The cost of labor will be adjusted with decreasing revenues. For 2009, the cost of labor in high-cost countries will be reduced by 20% (from 875 to 700 billion yen).
- The payment of bonuses to directors will be deleted for 2008. As of March and pending a clear improvement of the situation, the remuneration of the board of directors and management will be reduced by 10% while salaries paid the "managers" of NML and Affiliated Companies in Japan are amputees 5%.
- Nissan will negotiate the implementation of a plan of work sharing; this plan will be announced at the end of the year.
- The global workforce will be reduced by 20 000 during 2009, bringing the total number of Nissan 235 000 215 000 salaries.
- The stock will be subject to strict control. In March 2008, the central stock and dealers amounted to 630,000 units; this level will be reduced from 20% to 480,000 units by March 2009.
- The production will be adjusted through measures such as the removal of certain rotations, nonworking days and the reduction of working hours. These measures will reduce the global production of 787,000 units by the end of the year, a decrease of 20% compared to the planned volume.
- The reduction in investment will realize 21% savings at the end of fiscal 2008 compared to fiscal 2007. A further reduction of 14% will be applied during 2009, which will increase the total of investment expenditure of 384 billion yen (fiscal year 2008) has less than 330 billion yen (fiscal 2009).
- The joint production projects with Alliance partner Renault in Morocco and India will be reviewed. Chennai (India), the draft joint plant will continue at a rate of deployment has revised downward. In Morocco, Nissan will suspend its participation in the industrial project planned on the outskirts of Tangier.
- The product portfolio will be reviewed, especially with the cancellation of a number of future programs. Nissan will launch an average of ten entirely new vehicles each year during the period 2009-2012, including an entirely new range of entry-level vehicles on platform A and a 100% electric vehicle.
- By improving working capital, including accounts payable and receivable, Nissan generate 130 billion yen in cash for the year 2009.
- A detailed examination is in progress; it will identify opportunites greater synergies within the Renault-Nissan Alliance. The focus is on future investment products, technologies and media functions as well as on the reduction of costs related to purchases. During fiscal 2009, each company will contribute to the cash available, a height of at least 90 billion yen (750 million euros) of profits derived from these synergies.
A new organization
In addition to the measures taken to streamline its activities, Nissan also announced a change in its management structure in order to focus on regional and functional activities. These changes are effective on the spot. Toshiyuki Shiga, Chief Operating Officer, sees a widening of its responsibilities, which now include the management of an area - composed of three regions - which has just been created, in addition to the poles of production, research and development, procurement, product planning, design, marketing and sales. It remains attached to the President and Chief Executive Officer (CEO) Carlos Ghosn.
Colin Dodge is appointed to the newly created position of Chief Recovery Officer Carlos Ghosn has connected. In this post, Colin Dodge lead the recovery activities underway within the company; it will also support features "corporate planning" and "control". He also lead the new area that integrates Africa, the Middle East, India and Europe. Saikawa, Executive Vice President, took the head of a new area composed of Japan, China and Asia-Pacific markets. Saikawa remains responsible for purchasing and becomes responsible for Affiliated Companies.
Carlos Tavares, Executive Vice President, is responsible for a new area that consolidates all the steps of North America, Central America and Latin America. Andrew Palmer is appointed Senior Vice President responsible for product planning, the Infiniti pole, the pole and the new Commercial Vehicles Vehicles electric pole. Andrew Palmer has just been elected to the Executive Committee of Nissan.
Besides citees personalities above, the Executive Committee of Nissan includes the following officers:
- Alain Dassas, Chief Financial Officer (directly connected to Carlos Ghosn);
- Junichi Endo, Senior Vice President, Global Sales and Marketing;
- Hidetoshi Imazu, Executive Vice President, Manufacturing and Supply Chain Management;
- Mitsuhiko Yamashita, Executive Vice President, Research and Development and Total Customer Satisfaction.
Commenting on the anti-crisis measures and changes at the management level, Carlos Ghosn (President and CEO) made the following statement: "The additional steps we announce today reinforce our ability to manage this global crisis and Nissan put in a position to quickly resume the path of strong growth as conditions improve. A company must be flexible to meet the changing needs of the activity and I am confident that we have talent, diversity and experience necessary to the proper functioning of Nissan. "
