Renault and Nissan can cut their costs by another 5 billion dollars

Renault and Nissan can cut their costs by another 5 billion dollars

May 25, 2020 0 By autotimesnews

Both brands, consisting of the Renault-Nissan alliance, are going to make a corresponding announcement this week.

Renault and Nissan plan to announce cost cuts worth more than $ 5 billion. Such information is shared by the American business newspaper Wall Street Journal, whose correspondents refer to its own sources familiar with the situation. Formal statements from both automakers are expected on Wednesday, Thursday and Friday.

Thus, the sources of the publication claim that Nissan wants to cut costs by an additional $ 3 billion. Recall that the brand reported savings on the same amount in the summer of 2019. Since then, the company has managed to cut nearly 15,000 workers, and staff reductions will continue amid a reduction in the budget in each department.

Another measure is the reduction of production capacity. As a result, Nissan’s annual production volume will reach 5.5 million cars.

For Renault, other figures are called: cost savings of $ 2.2 billion, or 20% over the next three years. According to the profile media, initially both brands were going to sell about 14 million cars by 2022. Now another goal is called – about 10 million.

  We will remind, earlier it became known that Nissan Motor can reduce over 20 thousand employees worldwide. This news came from Japan. It is reported that layoffs will affect mainly Europe and countries with economies in transition.