Driven by the severe downturn in the global economy and after the firm’s CEO Carlos Ghosn reversed his forecast for the 2008 fiscal year that ends on March 31, 2009, from a net profit of $1.76 bn to a loss of $2.89 bn (265 billion yen), Nissan has put on hold its “GT 2012″ mid-term business plan and announced a series of emergency measures.
For instance, the company plans to reduce its global workforce by 20,000 employees to 215,000 by March 2010 and cut salaries paid to board members and corporate officers by 10% and those paid to managers in NML and affiliate companies in Japan by 5%.
Nissan also said that it will revise its product portfolio canceling ‘selected future programmes’ without however giving out any specific details. From now until 2012, the automaker will launch an average of 10 all-new vehicles per year, including the company’s all-new, A-Platform entry-car lineup and a dedicated all-electric vehicle.
Commenting on the countermeasures, President and CEO Ghosn said: “The additional actions we are announcing today will reinforce our ability to manage through this global crisis, but they also position Nissan for rapid, strong growth when conditions improve. An organisation needs to be flexible enough to meet the changing needs of the business, and I am confident we have the talent, diversity and experience to lead Nissan effectively.”
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