Boss of car brand ‘facing crisis' reveals ‘comeback plan' in ‘stormy' meeting after 20,000 jobs axed & factories shut
The manufacturer has put losses down to costs of carrying out new CEO's strategy
SHIFTING GEAR Boss of car brand 'facing crisis' reveals 'comeback plan' in 'stormy' meeting after 20,000 jobs axed & factories shut
Click to share on X/Twitter (Opens in new window)
Click to share on Facebook (Opens in new window)
THE boss of a reportedly struggling major car firm has laid out plans for the company's 'comeback' during a "stormy" meeting.
On Tuesday, Nissan's annual general meeting was held in Tokyo, Japan, weeks after announcing it will be axing 20,000 jobs.
Sign up for Scottish Sun
newsletter
Sign up
5
Ivan Espinosa took over as CEO of Nissan in April this year
Credit: EPA
5
Nissan shares have fallen by 36% in the last year
Credit: Reuters
5
Espinosa plans to make big cuts in a bid to revive the company
Credit: David Shepherd Photographer shep@Davidshepherdphotographer.com
It marked the first for new boss Ivan Espinosa who hopes to halt the Japanese company's decline through his plans for big cuts.
These cuts also include closing seven plants and cutting a total of around 25% of Nissan's workforce.
One shareholder reportedly accused the board of trying to 'shift its responsibility to frontline workers' by cutting jobs while retaining their own positions.
Espinosa, who replaced Makoto Uchida as CEO in April, is a Nissan veteran, and all eyes are currently on him to revive the company.
This comes after shares have fallen some 36% over the last year and dividend payments have been suspended, according to Reuters.
Reuters also claim that shareholders vented their frustrations over the automaker's poor performance at the annual meeting, with some allegedly demanding greater management accountability for the deepening crisis at Japan's third largest company.
Nissan reported a $4.5billion net loss in the last financial year, with there being no guarantee it will return to profit this year.
In fact, so far, it has reportedly declined to give a full-year earnings forecast, and has estimated a first-quarter loss of $1.36billion.
The firm also told MPs earlier this year that it is due to round up 2025 with debts of £10billion.
All the same, Reuters reported that shareholders voted down a number of proposals that the company had opposed, including an activist-shareholder proposal that would have forced Nissan to take action on listed subsidiary Nissan Shatai.
Luxury automaker to convert once-beloved sports bar left abandoned for years into an 'exclusive' motorcycle dealership
The manufacturer has put losses down to costs to carry out a strategy planned by Espinosa.
Earlier this year, he made way for a £2.6billion decrease in the value of production and forked out £316million in restructuring costs.
The restructuring included moves to axe 9,000 jobs internationally and the scrapping of a factory in Sunderland.
Tokyo-based activist shareholder, Strategic Capital, allegedly pressed Nissan to take action on its listed subsidiary as part of its overhaul.
While the proposal was defeated, the breakdown of the vote won't be known until next year.
According to Reuters, Japanese companies are under increasing pressure from the Tokyo Stock Exchange and regulators to clear up so-called 'parent-child listings,' as they are seen as unfair to minority shareholders and a drag on governance.
Strategic Capital had proposed that Nissan change its articles of incorporation so that it would be required to annually examine its relationship with listed subsidiaries and disclose what action it plans to take.
Nissan's board have reportedly opposed this proposition, saying changing its articles of incorporation would hinder its flexibility.
This follows Nissan announcing they were on the brink of collapse at the beginning of the year, as it entered a make-or-break 12 months.
In addition to the new plans to cut back, bosses also have already announced that the management team will transition to a single-layer, non-officer framework, which means a 20 percent reduction in top positions.
A spokesperson said in March, the move will create a 'streamlined and borderless organisation.'
These changes were implemented on April 1 this year.
The Sun has reached out to Nissan for comment.
5
Shareholders are demanding greater management accountability
Credit: Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
27 minutes ago
- The Independent
I just tried M&S's strawberry sandwich – but do I recommend it?
Whether it's a chicken caesar dip, a Dubai-inspired pistachio chocolate bar or premixed cocktail cans, M&S is responsible for plenty of viral food and drink trends. Now, the retail giant has debuted a sandwich reminiscent of a classic British dessert. The stalwart's new strawberries and cream sandwich nods to a signature Japanese sweet treat, known as a fruit sando. The popular snack usually includes fresh fruit, sliced white bread, and fresh whipped cream. The M&S take is made from sweetened brioche bread with the supermarket's famous red diamond strawberries, of which it sells more than 4 million punnets per year. M&S has always been at the forefront of sandwich innovation, having launched the first-ever pre-packed sandwich in the 1980s. Providing a sweet alternative to its cult savoury sandwiches, the £2.80 fruit sando arrived in aisles this week – but will it be a hit in the lunchtime rush? Whether you pack it in your picnic hamper, take it to watch Wimbledon or enjoy it as an afternoon pick-me-up in the office, the new dessert sandwich has landed just in time for summer. Here's everything you need to know, plus my taste test. How we tested I ran to the nearest M&S foodhall to grab the new red diamond strawberry and creme sandwich (it's already selling out across the UK). Considering taste, innovation and value for money, here's the IndyBest verdict.
Reuters
37 minutes ago
- Reuters
India mulls easing fuel efficiency norms for small cars sought by Suzuki, sources say
NEW DELHI, June 26 (Reuters) - India is considering relaxing fuel efficiency norms for small cars after lobbying by Maruti Suzuki ( opens new tab, which has seen sales of such cars drop amid an SUV boom, industry and government sources told Reuters. Small cars have been key to Maruti's success in India and account for most of its sales there. However, declining demand for small models, such as Alto or Wagon-R, has driven their share in the carmaker's sales to less than 50% of the 1.7 million cars it sold last fiscal year from nearly two-thirds two years ago. India is also concerned about falling sales of small, affordable cars, according to a senior government official, and the country's top carmaker recently made the case for more favourable fuel emission norms arguing slumping sales will hurt overall growth of the passenger vehicle market. "There should be more benefit for small cars. Maruti has been asking for that and we agree," the official said, explaining the rationale behind the planned move. Under its Corporate Average Fuel Efficiency norms, India currently links the quantity of permissible carbon dioxide emissions to the vehicle's weight for all cars weighing less than 3,500 kg (7,716 lb). The planned easing would relax such limits for cars weighing less than 1,000 kg, three people said, without sharing specific details of the reduction. To meet the norms and avoid penalties, carmakers need to sell a certain percentage of low-emission models, mainly electric vehicles. Relaxing the limits for small cars, means less pressure to electrify them, which will benefit those with the larger share of such models in their lineup, they said. With 10 of its current 17 models weighing less than 1,000 kg, Maruti stands to gain the most. Other carmakers with at least one small model on sale include Hyundai Motor ( opens new tab, ( opens new tab, JSW MG Motor, Renault ( opens new tab and Toyota Motor (7203.T), opens new tab. India's ministry of heavy industries did not respond to a request seeking comment. Maruti did not respond to an email seeking comment, but its Japanese parent Suzuki Motor (7269.T), opens new tab said in a 2024 sustainability report that small cars were good for the environment not just because of their lower emissions but also because fewer materials and less energy were needed to make them. In a closed-door meeting on June 17, the ministry asked carmakers, including Tata Motors, Mahindra & Mahindra and Volkswagen, if they agreed to give small cars more leeway in the next set of fuel efficiency norms that will apply from April 2027, three people said. The companies are yet to respond, but any preferential treatment will be a departure from a previously agreed consensus and could be seen as giving Maruti an unfair advantage, four sources said. Tata ( opens new tab, Mahindra ( opens new tab, Volkswagen ( opens new tab, Hyundai, JSW MG Motor and Toyota also did not respond to emails seeking comment. Renault's country head, Venkatram Mamillapalle, said the company is confident that India's auto trade body will "represent the collective voice of the industry ... that benefits all stakeholders". Four people familiar with the matter said that applying different norms based on a car's weight or size has not come up during months of consultations between the government and automakers.
Reuters
38 minutes ago
- Reuters
Crypto gains foothold in Bolivia as small businesses seek currency alternatives
COCHABAMBA, Bolivia, June 26 (Reuters) - In the busy shopping district of the Bolivian city of Cochabamba, ATMs let shoppers swap coins for cryptocurrency, beauty salons offer cut-price deals if you pay in Bitcoin, and people use Binance accounts to buy fried chicken. Bolivians are facing a rising economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump. The country's currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by government intervention. Some Bolivians are now turning to crypto exchanges like Binance, cryptocurrencies like Bitcoin, and stablecoins like Tether as a hedge against the depreciation of the boliviano. Official data is patchy, and cryptocurrency was outlawed in Bolivia until last year, but the most recent central bank figures showed transactions of digital assets at $24 million in October. Analysts estimate it has since risen significantly. In the speed of uptake, "Bolivia is now comparable to countries like Argentina and Venezuela," said Mauricio Torrelio from the Bolivian Blockchain Chamber. The overall size of the market, though, remains well behind those South American neighbors and other transactions domestically. Jose Gabriel Espinoza, former head of Bolivia's central bank, estimated that daily USDT volumes hover around $600,000, a fraction of the $18-$22 million in the formal financial sector and $12-$14 million in the cash-based black market. "While crypto is growing, it's still a nascent market," he said. Torrelio said Binance was the most popular platform locally, for its relatively low transfer fees and peer-to-peer trading. The world's largest cryptocurrency exchange, Binance has come under scrutiny globally. It agreed to pay a fine of over $4.3 billion in 2023 after pleading guilty to violating U.S. laws against money laundering. In Cochabamba, Pablo Unzueta's steakhouse Bros allows customers to pay via Binance accounts or buy Bitcoin using an ATM linked to Blink, a crypto wallet developed in Central American country El Salvador - which made waves in 2021 when it made Bitcoin legal tender. "If you go to the banks today, they don't have dollars," Unzueta told Reuters. "Paying for a chicken with Bitcoin or saving in Bitcoin is the most innovative and promising thing a city like Cochabamba can do." Unzueta demonstrated how the ATM works, feeding a one-boliviano ($0.14) coin into the machine. "The idea is to move away from the piggy bank and instead use this technology." Carla Jones, a local spa and salon owner, offers incentives to customers who pay with crypto assets, which she said both attracted younger customers and acted as a savings safeguard. "If you buy three tanning sessions, you get a discount if you pay with Bitcoin," she said. "It's a way to keep my money safe and also try to grow my wealth." Bolivia is facing its most acute economic crisis in a generation. Dwindling domestic gas production has forced it to import costly fuel, eroding its foreign currency reserves, and making it hard to continue to pay for imports. The lack of dollars has spawned a black currency market, with a wide gap between the formal and parallel FX rates. On the street, you need over 16 bolivianos to buy a dollar versus the largely symbolic official rate of around 6.9 per dollar. Crypto proponents have pushed blockchain-based tokens as an answer. On June 7, Tether chief executive Paolo Ardoino posted photos from a duty-free shop in the Bolivian city of Santa Cruz, showing items like sunglasses and Oreo cookies priced in USDT, the firm's dollar-pegged stablecoin. "A silent revolutionary shift: digital dollars powering daily life, commerce, and economic stability," he said on X. Economists, however, warned it was not so rosy. "This isn't a sign of stability," said former central bank head Espinoza. "It's more a reflection of the deteriorating purchasing power of households." Peter Howson, assistant professor in international development at Northumbria University in Britain, warned that Bolivians would be vulnerable to crypto's constant fluctuation in value. "We've seen in Bolivia and across Latin America, what we call 'crypto-colonialism'. Crypto companies try to convince the rural poor to invest what little real money they have in a cryptocurrency," he told Reuters. "When it goes down in price, no vendor wants to accept it." But in Cochabamba, 35-year-old Andree Canelas is a Bitcoin enthusiast, helping install crypto ATMs in shops and cafes. "More and more people have understood that if they save bolivianos and keep them in their tills for too long, they're going to lose purchasing power," Canelas said. Cryptocurrencies did come with risk, he said, but added: "They may see some volatility in the short or medium term, but long term it's a good store of capital."
