Nissan’s leadership has not been immune to the cost-cutting measures. Chief Executive Makoto Uchida has taken a 50% pay cut, and Chief Financial Officer Stephen Ma has stepped down amid the turmoil. These developments underscore the gravity of the situation and the uphill battle Nissan faces in its bid for survival.
A major shakeup in the automotive industry is underway as experts predict that Nissan, one of the world’s most recognizable car manufacturers, could face collapse within the next 12 months. The alarming forecast has sent shockwaves across the global automotive sector, raising concerns about the potential impact on employees, investors, and the industry as a whole.
Nissan, which employs over 20,000 people globally, has been grappling with significant financial challenges. The company recently announced plans to close 20% of its manufacturing capacity and lay off approximately 9,000 employees in an effort to cut costs. These measures are part of a broader initiative to reduce expenses by $2.6 billion, but industry insiders warn that this may not be enough to stave off financial ruin.
Last month, Nissan’s head of manufacturing, Hideyuki Sakamoto, revealed that the company would reduce its operational production lines by 20% to increase efficiency. He explained that this would involve adjusting line speeds and shift patterns to optimize the use of personnel. However, these measures highlight the severity of Nissan’s financial difficulties.
