In late January 2020, the date of prenatal CEO Ghosn (Carlos Ghosn) represented through counsel Gohara to foreign media, Nissan will be bankrupt in two to three years, but did not explain in detail why such a prophecy, so many people remarks still hold a lot of questions.
However, according to the latest Reuters reported that Japan, Nissan’s overall global operating conditions are continuing to deteriorate, and therefore is expected to lay off 4,300 employees and close two factories, which shows Ghosn non-empty talk, there is a certain these conditions and let Nissan is facing a major crisis.
Reuters reports mentioned, Nissan in July 2019 set a goal to be able to plan in March 2023 of annual financial settlement, reached net sales of 14 trillion yen to 5,000 memory, operating profit of about 6 percentage 8,700 billion yen target. To achieve this goal, however digital, daily production originally anticipated development of the fiscal year March 2019 to March 2020, it should at least reach a global sell 550 cars sold, even this should stand on a 6 million , and now only may only reach 5 million results.
In this lower than expected sales performance in the US market in 2019 it fell by 10% compared to 2018 sales, and the continued downturn in the Chinese market also makes Nissan sales were down 1.1% compared with 2018. In addition to production and global sales of the model, a total of 69 models in 2018, sold 5.2 million new cars, each vehicle on average about 75,000 vehicles, according to the time plan, by the end of 2022 line-up will be expanded to 73 models.
originally Carlos Ghosn’s global expansion plans, a substantial increase in sales of manpower, march include India, Russia, Southeast Asia, South Africa, the results of the entire Nissan group sales team annual cost of up to 1 trillion yen, accounting for Group 45 year fixed percentage of the cost of 2.1 trillion yen, while Nissan Group has a 40 percent production capacity did not produce normal functioning, maybe even idle situation. In pay such a high cost of sales plans, performance has continued to decline.
Reuters he mentioned, people familiar with the target to reach a daily production not only from the 2023’s more and more difficult, and thus gradually the internal shipped to rectify the adjustment plan, the one that will reduce the number of models to 62 models, each car will increase the average sales to 87,000 vehicles.
while Nissan had previously estimated 1.25 million people laid off, and now more and more likely to lay off 4,300 people, which were included Tennessee sales and marketing people in the vicinity and Geneva, Switzerland, in addition to headquarters in Japan it is also expected to suffer influences. Finally, in the case of excessive production capacity, Nissan plans to close two factories directly, in the case of lackluster sales, or can only proceed from the reduction of costs, but also obvious Nissan seems to be facing a financial crisis Ghosn implied?