Nissan switches to maximum financial savingsDecember 28, 2019
Nissan campaign executives have reportedly ordered a series of sharp cuts in financial spending to cope with reduced sales and lower profits.
Reuters, citing three anonymous sources that allegedly have competent information on this issue, reports that the Japanese car manufacturer is cutting back on insignificant expenses, including unnecessary travel, sales promotion and promotions.
This step by the company’s leadership is an attempt to correct Nissan’s financial results for the remainder of the fiscal year (until the end of March 2020), but most likely this policy will be maintained next year, sources said. Only one representative will now be able to attend on-site meetings in which three or four people need to go in person, while other meetings and dinners are completely canceled or replaced by video conferencing. As one source said, Nissan should “save every yen.”
Cost reductions are in addition to Nissan’s two-day vacation decision for US employees from January 2 to 3, as well as a travel ban on employees in the country.
Nissan currently has no shortage of money, but its latest actions show the scale of the crisis inside the company – in April last year they announced a big plan to increase sales and profits, but since then the prospects have worsened much more than expected. Second-quarter operating profit fell 70 percent, prompting Nissan to lower its full-year forecast to an 11-year low.
Another source confirmed that Nissan currently has a lot of cash as well as good lines of credit. These include money from a company in China, after several years of accumulated profit from operations with joint ventures in China.
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