REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts
Nissan hasn't posted an annual loss in nine years, but the automaker is poised to take a big hit on its 2008 earnings, and like the rest of the industry, it is scrambling to restructure. The Japanese carmaker is expected to report a $2.9 billion shortfall, prompting Carlos Ghosn and his team to chop 20,000 jobs – fully 8.5 percent of its employees worldwide. Some of the job losses will be arrived at through early retirement packages and the ending of temporary worker contracts, but most will be out-and-out layoffs. The personnel cuts will leave Nissan with 215,000 workers globally and take place now through March of 2010.
Nissan's planned cuts are markedly more aggressive than those employed by other Japanese automakers, suggesting that Japan's third-largest automaker is even more pessimistic about the potential for near-term economic gains. That appears to be particularly true in its domestic market, where the strong Yen and other factors have conspired to result in 12,000 of the planned job losses. Thanks for the tip, Karen!
[Source: Associated Press via ClockOnDetroit | Image: Akihiro I/Getty
Reader Comments (Page 1 of 2)
BLS 10:45AM (2/09/2009)
Carlos says, "I will now play Taps on my imaginary trumpet."
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Richard S. 3:10PM (2/09/2009)
Nissan feels like Japan's Pontiac. It wants to cultivate an image of sportiness but offers entry-level cars full of plasticky details and interior. It has some decent cars but the rest cannot fully compete with Toyota or Honda.
The only cars that I care for Nissan (note I am omiting Infiniti) are:
-The Nissan Maxima (like the Pontic G8 it is the only decent sedan in its line-up)
-Nissan 370Z (I own and prefer the style of the 350Z but wish the interior was a little more refined)
-Nissan GT-R. (other than tranny issues, this car is the one....)
My peeves:
-Versa (seems like Nissan design copied the Dodge Caliber designer's homework)
-Senta (seems like a Chinese-copied car. The Kia Forte looks better)
-Altima (decent design, but just as the Pontiac G6, not really up to par to the Camcord)
-Quest (note to Nissan: soccer-mom and minivan buyers like boring design as the Odyssey, Sienna and Town & Country.
-Pathfinder (what happened? the original was a must have for the young crowd. Now it feels and looks like it could wear an Isuzu badge)
-Armada (too big and too rough but not as competent as an Expedition or Suburban
lester 10:48AM (2/09/2009)
Spitting image of Mr. Bean. I really didn't know he had successful brother with handsome looks like that.
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tricky dicky 10:53AM (2/09/2009)
this comes as shocking news, along with toyota now poised to lose almost 5 billion as reported on leftlanenews.
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jv2k 11:02AM (2/09/2009)
It's shocking that car companies are losing money in an economic crisis which is preventing people from taking out loans?
George 11:19AM (2/09/2009)
It is shocking to tricky dicky because he thought the japs were invincible. Now he knows better.
jv2k 11:26AM (2/09/2009)
I blame the idiot at nissan who made it his mission in life to ugly up the front end on every model of nissan.
Nick 11:35AM (2/09/2009)
"I blame the idiot at nissan who made it his mission in life to ugly up the front end on every model of nissan."
I think it's more of the bubble rear end that is making their cars fugly.
vkchu 12:19PM (2/09/2009)
this is like deja vu.
didnt ghosn do this already way back in 2001 (or whenever it was) when he took over the reins @ nissan? guess you gotta stick w/ what works.
Brn 11:28AM (2/09/2009)
Maybe some of those cuts are due to the outsourcing of their trucks to Dodge.
Probably not many, but it's nice to think about.
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jeff 7:02PM (2/09/2009)
I just came across a very helpful website on the current economic downturn and employment: http://www.recessioninfocenter.com
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ack154 11:59AM (2/09/2009)
$2.9B?!
They must have had to fix a LOT of GT-R transmissions!
Oh, wait...
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ken_aisin 12:34PM (2/09/2009)
How about abandoning the truck business once and for all, and focus the resources on something that has a better ROI?
For example,
1) speed up the production of the GT-R to meet demands.
2) build a more affordable version of the GT-R, say without the twin-turbo.
3) build a 4-door GT-R. Porsche's doing it with that ugly Panamera. So, why not?
Might also want to kill some models to cut costs:
1) The Quest has never been a good selling model, kill it.
2) I don't really see the point of the Rogue and Murano when you have the Xterra and Pathfinder which are in the same price range.
3) Keep the Altima and kill the Maxima. Don't see the point of a $30k Maxima when I can get the G sedan for $35k.
4) Again, kill the Armada, Frontier and the Titan. Really, no one wants them.
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AIL 1:00PM (2/09/2009)
Build MORE gtr's and related? Short-term thinking there. The gtr may be hot now but wait a few weeks. The future for these types of vehicles is dim indeed.
Tony 1:18PM (2/09/2009)
RE Cut #2 - The Rogue and Murano actually sell very well and are car based "crossovers" with good fuel economy. The Xterra and Pathfinder aren't selling well at all and are truck based "SUVs" with terrible fuel economy. So tell me again which two you want to cut?
Brn 2:26PM (2/09/2009)
Ken, what makes you think they're earning any money on the GTR? It's most likely a loss leader.
ken_aisin 2:44PM (2/09/2009)
@AIL: It is definitely a short term suggestion. With the current economy, you must squeeze every bit out of something that that sells to keep the boat floating. The GT-R is not a fad, and it won't cool down in a matter of weeks. It is a high performance bang for the buck that will maintain its high demand for more than a year.
@Brn: The more they sell, the cheaper the R&D cost per vehicle. That's why I suggested to sell a more affordable version without the twin-turbo, and if possible, build some with 4 doors.
ken_aisin 2:50PM (2/09/2009)
@Tony: The Murano's consumption is 23 mpg, the pathfinder is 22 mpg. The MSRP are almost the same. If I have to choose, I would cut the Murano and Xterra.
Tony 4:51PM (2/09/2009)
Wrong again Ken. If you compare a Murano AWD model with a Pathfinder 4wd V6 model, the Murano gets a combined 20mpg whereas the Pathfinder only manages a combined 16mpg. The Murano is rated at 18 City 23 Hwy and the Pathfinder is 14 City 20 Hwy. All these numbers can be easily verified by visiting:
http://www.fueleconomy.gov
In January 2009 Nissan sold 5,204 Muranos and only 1,547 Pathfinders.
So now tell me again why you want so badly for Nissan to cancel the Murano?
ken_aisin 9:57AM (2/10/2009)
@tony, thanks for the info. the gas consumption were from the Nissan website. anyway, if the Murano sells much better, than I suggest them to cut the Xterra and Pathfinder.