Nissan sells subsidiary, cuts costs and jobs

Nissan sells subsidiary, cuts costs and jobs

September 19, 2019 0 By autotimesnews

Nissan is currently in difficult times and is reportedly preparing to sell a subsidiary specializing in the distribution of machinery, spare parts and raw materials.

It is believed that the Japanese car manufacturer intends to “lose weight” and save, and expects to sell its subsidiary for about $ 1 billion. Several private and trading companies have been invited to bid on Nissan Trading Co., and a buyer can be selected as early as October.

Revenue Nissan Trading Co. for the fiscal year at the end of August amounted to 6 billion dollars. Nevertheless, it is obvious that the company believes that now is the right time for significant cash injections. In July, Nissan said it would cut 12,500 jobs worldwide after a 94.5% drop in net profit for Q1 2019 and a 6% drop in sales to 1.23 million cars.

What’s even more relevant is the fact that Nissan’s operating profit fell 45% to $ 2.9 billion for the 12-month period ending March 31, 2019, while car sales also fell 4.4% over the same period. period. Former executive director Hiroto Saikawa said at the time that the automaker had hit the bottom and blamed former leader Carlos Ghosn for it. After his own scandal with impressive compensation, Saikawa also left the company.