• Oct 24th 2009 at 7:03PM
  • 15
Some companies respond to "losing money at a frightening pace" by studying the problem at length as they continue to lose more money, by asking for more money or, in the worst cases, not doing anything at all. Nissan didn't do any of those things: after posting a loss of $2.4 billion in the fiscal year that ended in March of 2009, Carlos Ghosn put Nissan EVP Colin Dodge in charge of a financial recovery task force. Just months later, the task force is about to disband itself. Said Dodge, "We're not losing money anymore."

How did they do it? The usual tactics: new car programs shelved, production moved to China and Thailand, suppliers dropped -- you know the drill. The noteworthy thing is how quickly Nissan did it: just about half a year. Said Dodge, "The industry has made hard work out of decisions like this. It doesn't have to be so studied."

Nevertheless, while Nissan has stopped losing money -- and that's a great thing -- how will those shelved programs affect Nissan's future lineup and how thoroughly do you vet a new supplier that you turn to in a panic? It isn't the first time that Nissan has been in dire trouble, and they've made it out all right before, so we figure they know what they're doing. But the real proof of Dodge's work, and apparent success, won't be seen for a while.

[Source: Auto News, sub req'd]

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    • 1 Second Ago
      • 5 Years Ago
      Oh yes, bean counters running the show. Yeah, that'll work.
      • 5 Years Ago
      So production moved to China and Thailand?

      The general impression put out by the media is that only the evil domestics shipped jobs to cheaper job markets. Maybe Michael Moore should do a documentary called: Ghosn and Me?
      • 5 Years Ago
      Now they can hire some designers again...
      • 5 Years Ago
      I second that thought. Poor quality, de-contenting, outsourcing the construction and assembly of vehicles. I wouldn't buy a Nissan on a bet.
      • 5 Years Ago
      Now it's time for something else to fill in the Altimas slot. Like the Honda Element, Nissan seems to have no idea what to do after 5 years.
      • 5 Years Ago
      I think somebody else who said "Mission Accomplished" caught a lot of hell after that. Choose your words wisely Nissan.
      • 5 Years Ago
      If they are so good, perhaps they should have done those things BEFORE losing $2.4B
        • 5 Years Ago
        Like how you should be quiet, BEFORE displaying your ignorance.
      • 5 Years Ago
      his last name being dodge kept confusing me as i read this, how about using his first name next time?
      • 5 Years Ago
      • 5 Years Ago
      The electric future of Nissan seems quite promising, they might reconcile me with the brand as I am a former Nissan owner, as one of these land gliders would make a fine commuter.

      However the present leaves much to be desired (no pun intended). Those buying a Nissan these days are basically getting a Renault (as per comment of a friend of mine who owns a Nissan Note). And while Renault make decent cars they have never been up to traditional japanese standards.

      I don't believe they actually lost 2.4 billion. More likely they just exaggerated the losses to do whatever worker unfriendly restructuring corporate had planned for decades. Problem - reaction - solution or the Hegelian dialectic. It's also used in boardrooms.

      As has been said, when bean counters run the show nothing good comes out of it, the logic of money is distinct from the needs of human beings, and more and more people need to realise this.
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