AN ICONIC car brand reportedly on the brink of collapse is set to make major changes and slash spending – as pressure mounts on the boss to quit.
Japanese car giant Nissan is understood to be undertaking a wide-ranging review of its dealer and customer programs amid ongoing financial struggles.
Honda is slashing spending amid ongoing financial struggles[/caption]
Bosses hope the move will cut costs, after they were advised the company had 12 to 14 months to survive.
However, concerned directors at the company are on the lookout for someone to replace current CEO Makota Uchida, Bloomberg has reported.
Makota, who has run Nissan since 2019, has previously said he would step down if asked, despite his contract not running out until 2026.
The potential shakeup comes after a failed merger with Honda – a last-ditch attempt by the company to fix its financial woes.
Things took a turn for the worse last year, when dealers were asked to start selling cars at a loss – leading to a sharp decline in profits.
Bosses decided to expand a pre-existing partnership with Honda – with ex- CEO Carlos Ghosn criticising the move as a “disguised takeover”.
In November, the company made the bombshell announcement that it would be sacking 9,000 employees and selling a stake to Mitsubishi.
It also said it was slimming down its global production capacity – which had already been cut a few months previously.
At the end of December, bosses decided to officially merge with Honda.
But the deal disintegrated after Honda demanded the majority stake in the partnership – although Honda says it is still open to negotiations.
Since then, Nissan has faced another onslaught of blows – with its shares plummeting by 10 per cent last month.
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A few days later, it was reported that the desperate company had cancelled a production shift at its Sunderland factory to improve efficiency and try to recover from its slump.
And, this month, the carmaker confirmed the death of its iconic GT-R R35, affectionately known as Godzilla.
A statement on the carmakers website said: “We have received many orders for the Nissan GT-R and have now finished accepting orders for the planned production quantity.
“We would like to express our sincere gratitude to all our customers for their support since its release in 2007.”
NISSAN’S WOES
Legendary carmaker Nissan is “on the brink of collapse”, following a decline in sales in recent years which was brought about by poor management decisions and a failure to adapt to the growing electric vehicle market.
Nissan’s worries have been further exacerbated by the Zero-Emission Vehicle, or ZEV, mandate, requiring 28 per cent of car sales to be electric in 2025 — or face fines of £15,000 for every car they fall short on.
The iconic brand tried to merge with rival Honda but talks sensationally broke-down last month.
One Nissan senior official said they strongly objected to the “rude things” his company had been told.
A merger with Honda could cut costs for both companies, but there were two key reasons behind the collapse in talks.
Firstly, discomfort came from Honda’s demand that Nissan would become its subsidiary, something the latter felt went against previous agreements, reports The Japan News.
Secondly, Honda also told Nissan to restructure its business and abandon its original hybrid vehicle (HV) system, e-Power, in order to adopt Honda’s HV system.
The Japanese car maker has warned it is “on the brink of collapse” and that it could go under without much-needed support.
A Nissan official said the firm has “12 or 14 months to survive” and was likely to endure “tough” months ahead.
The firm has already cut 9,000 jobs across its global operation, while its CEO Makoto Uchida took a 50 per cent pay cut in an economy drive.
Currently, Nissan’s sales of electric cars, such as the Leaf, are lagging behind their rivals, putting them at risk of significant penalties.
Nissan entered talks to merge with Honda late last year[/caption]
