REPORT: Nissan ready to say "Mission Accomplished" on recovery work
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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Reader Comments (Page 1 of 1)
Axel 7:13PM (10/24/2009)
If they are so good, perhaps they should have done those things BEFORE losing $2.4B
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Tael 4:42AM (10/25/2009)
Like how you should be quiet, BEFORE displaying your ignorance.
RWD 7:44PM (10/24/2009)
ok since they do not lose money anymore , when is the next 240sx s16 model coming , I am waiting to find a car to replace my old s14 .
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Citizen Chin 7:52PM (10/24/2009)
That'd be sweet. Unfortunately, it'd probably weigh at least 1000 lbs. more than your old S14. The use of advanced alloys and nano structured metals can't happen soon enough to help stave off the bloat.
Peter Hill 4:07AM (10/26/2009)
And I'm wanting something to replace my pair of CA18DET RS13 hatchback.
Everything has a cabin 15cm too short too be of any practical use.
Everything has too big a turning circle, anything over 10m is hopeless. Hitting the lock stops = end of game.
Everything has worse CdA even though they have 10% better Cd.
Just this time round please make sure it has decent brakes so I don't have to rob a Z.
*WoodysCarSite.com* 8:25PM (10/24/2009)
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.
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Judy Zik 8:42PM (10/24/2009)
Cutting costs is easy. Cutting costs and not having it effect your product and therefore your customer and your sales is not so easy. Nissan already has a hit and miss reputation on quality and some members of it's lineup are more than just a bit dated and their sales are showing it. Rejuggling suppliers, reducing costs on parts and slowing development could come back to hurt them.
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zamafir 1:28AM (10/25/2009)
well put. I'd love to see a true civic si/gti battling car from nissan, and new altima, ditching a lot of that drab black interior and maybe moving away from those obnoxious cvt's for DSG. The GT-R's amazing, 370z too, it's just the sedans that seem to be so bland.
PJ 4:34AM (10/25/2009)
I personally think CVTs are the answer for your typical consumer: no involvement, no thumps, no bumps, no quirks. I'll only buy three-pedal cars, but in those times when I'm forced to drive a fun-free two-pedal, CVTs work best for me.
As for the future of Nissan, remember, this is a company that brought itself back from the brink less than a decade ago. They shifted from enthusiast cred to to mass-market appeal in the mid-'90s, found themselves with an anonymous, lackluster lineup (remember the late-'90s Sentra, 200SX, Altima, and Maxima?), and back again within the space of 10 years. I have no doubt that they'll be able to make the tough decisions again, thanks largely to management whose strings aren't pulled by excess bureaucracy and cheap labor.
Nissan is on their way up. The Cube, Versa, Z, Altima, Rogue, and Infiniti division are proof of that.
300istheno. 9:58AM (10/25/2009)
pJ, the cube is like 10 years old.... just new to americans.
BUT, yes, they have had a few quality products added to the line up and hpefully they can hold their own till the new products arrive to keep everyone's interest. i personally have always loved a nissan
Gary Lowe 9:06PM (10/24/2009)
I second that thought. Poor quality, de-contenting, outsourcing the construction and assembly of vehicles. I wouldn't buy a Nissan on a bet.
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Farmboy 10:48PM (10/24/2009)
I think somebody else who said "Mission Accomplished" caught a lot of hell after that. Choose your words wisely Nissan.
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Light Speed 11:09PM (10/24/2009)
his last name being dodge kept confusing me as i read this, how about using his first name next time?
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Wally 7:13AM (10/25/2009)
Oh yes, bean counters running the show. Yeah, that'll work.
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Zeph 7:29AM (10/25/2009)
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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Yaroukh 8:48AM (10/25/2009)
Now they can hire some designers again...
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Gary 12:38PM (10/25/2009)
Test
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Gary 12:54PM (10/25/2009)
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?
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