Nissan layoffs, plant closures: Carmaker announces more cost cuts
Following a whirlwind year, the company announced it would also close seven plants, Reuters reported. The move will cut the number of its production plants from 17 to 10.
It was not immediately clear which positions were being slashed and which plants were shuttering.
USA TODAY has reached out to Nissan.
Financial results a 'wake-up call,' CEO says
Nissan employs more than 133,000 people worldwide, according to Nissan's Global website, with about 21,000 people, including manufacturing employees, in the United States.
The new layoffs will bring Nissan's total workforce cuts to about 20,000 jobs. Last year, the automaker announced plans to cut 9,000 workers and previously announced nixing plans to build a plant in Japan.
"As you can see, our full-year financial results are a wake-up call," newly named CEO Ivan Espinosa said during a press conference, according to Reuters and The Japan Times. The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support."
Espinosa, who replaced former CEO Makoto Uchida (2019-2025) recently revealed a handful of upcoming vehicles to the public recently including the new Leaf EV and the Kicks.
The hidden costs of owning a car: How fuel, maintenance and depreciation add up
Nissan layoffs come after retreating on merger
The move comes on the heels of Nissan facing a plethora of challenges including new management, falling sales, and potential merger or acquisition. But analysts don't see the company failing anytime soon, the Detroit Free Press, part of the USA TODAY Network reported last month.
In December 2024, Nissan and Honda announced a plan to merge, but Nissan retreated from the negotiations in February.
This is a developing story.
Contributing: Reuters; Mark Phelan with The Detroit Free Press
Natalie Neysa Alund is a senior reporter for USA TODAY. Reach her at nalund@usatoday.com and follow her on X @nataliealund.
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Reuters
2 hours ago
- Reuters
Trading Day: Market inflection points abound
ORLANDO, Florida, June 3 (Reuters) - By Jamie McGeever, Markets Columnist Stocks and the dollar rose solidly on Tuesday even though markets lacked a central, driving force - signs of weakening economic activity, cooling labor markets and disinflation are all reasons for caution, but risk appetite continues to be fueled by hopes that U.S.-China trade tensions will soon ease. In my column today I look at why foreign investors' exposure to U.S. assets may not be as high as feared. If it's not, the potential downside for Wall Street and Treasuries from diversification may be less severe. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Market inflection points abound Evidence is mounting that global economic activity is slowing, but this is failing to move the dial much for markets. Investors know growth is slowing and that the second half of the year will be challenging, so that's already 'in the price'. Hopes of a de-escalation in the trade standoff between the U.S. and China, and for bilateral deals between the U.S. and other key trading partners soon are supporting risk assets. The S&P 500 hit a three-month high on Tuesday, while the Nasdaq and MSCI World index climbed to levels last visited in February. It is the strength on Wall Street, most latterly tech, that is lifting global stocks as benchmark Asian and European indices are flatlining. On the whole, policymakers continue to stress that they are data-dependent and will move on rates carefully and calmly. That was the message from various Fed officials this week and Bank of England Governor Andrew Bailey on Tuesday. It's a slightly different - although no less challenging - situation in mainland Europe, where figures on Tuesday showed disinflationary forces are driving consumer prices as much as anything else. Euro zone inflation dipped below the European Central Bank's 2% target in May, cementing expectations rates will be cut this week and later this year. Meanwhile, Switzerland experienced outright year-on-year deflation for the first time in four years, raising the possibility that the Swiss National Bank may soon reintroduce negative interest rates. Canada's central bank is expected to hold interest rates at 2.75% on Wednesday for a second meeting. Growth and inflation have been surprisingly sticky this year, and rates have been slashed by 225 basis points since last June. As UBS analysts note, markets are generally at an inflection point, waiting for the catalyst that will break them out of the narrow ranges that have broadly held since the U.S. and China announced a temporary reduction on tariffs on May 12. Even Wall Street and the dollar - one creeping higher, the other drifting lower - are awaiting a trigger for a proper breakout. Could the telephone call between U.S. President Donald Trump and Chinese leader Xi Jinping expected later this week be it? Foreign exposure to U.S. assets may be lower than feared It is widely believed that investors around the world have a disproportionately high exposure to U.S. assets, particularly stocks, an imbalance that could roil U.S. markets if corrected. But what if these fears are overblown? Several eye-popping statistics suggest that America's weight in world financial markets is even greater than its outsized economic might. Most strikingly, the U.S. net international investment position (NIIP), or foreign investors' holdings of U.S. assets less U.S. investors' holdings of overseas assets, at the end of 2024 was $26 trillion. That's nearly 24% of global GDP, up from 16% only two years earlier, a surge driven by foreigners' insatiable appetite for U.S. equities, mainly "Big Tech". Demand was so hot that, by some measures, the value of U.S.-listed stocks at the turn of the year represented 74% of total global market cap. That share was 60% six years ago, and less than half in 2011. But the attractiveness of dollar-denominated assets is now being questioned, as the often erratic policies of U.S. President Donald Trump have upset longstanding economic and geopolitical norms, making governments and investors question whether Washington is still a reliable partner on the global stage. The concern is that this eroding confidence triggers a reversal of the massive flows into Wall Street seen in recent years that has damaging spillover effects. Such a correction may not require outright selling. Given the scale of the flows involved, just less buying among foreign investors could be enough to cast a shadow over the world's most important stock market. And the running assumption is foreign investors don't have the capacity or willingness to increase their exposure to U.S. assets, creating a significant long-term downside risk for Wall Street, Treasuries and the dollar. "A structural shift is underway: the slow erosion of US economic dominance," analysts at Deutsche Bank wrote on Monday. But looked at another way, foreign exposure to U.S. assets may not be as high as initially meets the eye. That's the view of analysts at JP Morgan, who measure portfolio investment in U.S. bonds and equities as a share of countries' total household sector financial assets. They use a broad definition for a country's "household" sector, covering investments by institutions like insurance companies and pension funds that are ultimately made on behalf of households. Using a broad range of data, from central banks, U.S. Treasury and OECD household financial asset flows, they measure the ratio of U.S. equity and bond holdings relative to household financial assets in each country. They find that "relative to the total financial assets of households in the rest of the world, the allocations to U.S. assets typically stand at around 10-20%." As a result, they are "skeptical of the idea that foreign investors hold too much of U.S. assets." Given that U.S. equities account for more than 70% of the MSCI global market cap and dollar-denominated bonds represent around 50% of global bond indices, according to JP Morgan estimates, the 10-20% exposure of foreign investors to U.S. assets does appear surprisingly low. And the 10-20% figure would be even lower were it not for the outsized U.S. equity holdings at the Swiss National Bank and Norway's sovereign wealth fund. On the bond side, foreigners' footprint in the U.S. Treasury market is shrinking. Data shows that they owned 31% of the $28.55 trillion outstanding Treasury debt at the end of last year. That share has been declining steadily since the Global Financial Crisis. In 2008, the figure was approaching 60%. Overseas investors' share of the T-bill market has shrunk even more. In December, it was under 20%, near its lowest level on record and sharply down from 50% a decade before. Nikolaos Panigirtzoglou and his team at JP Morgan aren't arguing investors will or should ramp up their purchases of U.S. assets. And in cases where allocations are high - such as the Taiwanese exposure to U.S. bonds or Canadians' holdings of U.S. stocks - diversification would hardly be a surprise. But there is "little indication" of broad-based selling of U.S. assets by foreign investors so far this year, they note. And if that selling does materialize, it may be far lighter than many expect. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
South Wales Argus
3 hours ago
- South Wales Argus
Audi A5 review - is the Audi A4 replacement a better car?
Datsun was the original name given to cars built by Nissan and sold in Europe. The badge was dropped in 1984 in favour of the parent company's brand. Going through a rebrand is a risky and very expensive business. In Datsun/Nissan's case it cost the company half a billion dollars… in 1984. Today that translates to roughly $1.3 billion just to change a name plate. And Nissan is far from alone. Mitsubishi cars used to be branded as Colts in the UK and Daewoo transformed into Chevrolet (in Europe at least) before disappearing altogether. Cars change their names too. Famously, Porsche was forced into a last minute change for its 901 sportscar when Peugeot claimed the number. Instead, it's rear-engined sportster was called… the 911. Tesla's Model 3 was originally going to be the Model E because the four model range would then spell out S-E-X-Y. Thankfully, clearer heads prevailed. The Alfa Romeo 164 saloon had to be rebranded as the 168 in Taiwan and Hong Kong because the number 164 means 'all the way to death' in Chinese. Which brings us to the Audi A5. The A5 is the new name for the A4, Audi's highly successful compact premium saloon. Why? Because last year marketeers decreed that odd numbers would henceforth denote internally combusted engines and even numbers would be reserved for electrically powered models. Or at least it did until earlier this year when the company did an about turn following complaints that the rebrand was causing confusion. Except it has no plans to swap the A5 back to the A4 – the only model to be rebranded before the whole plan was scrapped. Confused? You're not alone. I had the A5 on test and was approached twice by enthusiasts asking if it was the new Audi coupe. To which my answer was 'sort of' because there isn't going to be a direct replacement for the old two-door A5 Coupe. That's not to say the new A5 is unattractive. The shape is a modern re-interpretation of the previous generation A4 (internally known as the B9) which was hailed as one of the most beautiful cars in the world in a survey a few years ago – so that's a good place to start. The A5 brings the body style up-to-date with a bigger grille, sleeker headlights, flush-fitting door handles and a full width light bar at the rear that echoes the Audi A6 EV. The good news carries on when you slip inside. Audi has a justifiable reputation for building some of the best cabins in the automotive business and the A5 is packed with high technology. Most obviously, there's the full width digital screen set-up which adds a third monitor above the glovebox for the passenger to fiddle around with (they can change the radio station, call up a weather forecast and see how fast you are travelling among other things). Audi says the third screen cannot be seen by the driver but I was always aware of it out of the corner of my eye. The old A4 was one of the first Audi models after the Mk3 TT to get a virtual cockpit back in 2015 and the new system goes one further with a sweeping panoramic monitor set-up that can be customised to your individual requirements. The central screen is a whopping 14.5 inches and responds instantly thanks to a beefy processor upgrade and changes to the user interface. The high resolution means the graphics are sharp and easy to read. The main instrument screen measures 11.9 inches and displays all you need to know at a glance. Sadly, the beautiful row of silver alloy switches for the air con and climate control in the old A4 has been replaced by virtual controls on the new A5. At least they are permanently 'on' so it's fairly easy to adjust the temperate regardless of what you're doing (albeit not as simple as just flicking a switch). Wireless CarPlay and Android Auto are standard along with a handy wireless charging plate for compatible phones. The Sound and Vision optional upgrade adds a Bang & Olufsen branded stereo and a head-up display. Touch sensitive pads on the steering control the audio and cruise/speed limiter, but they can sometimes be activated by mistake when turning the wheel and your palm accidentally brushes against them. There's more room inside the new A5, which is both longer and wider than its predecessor, and five adults can sit in complete comfort, although there's a transmission tunnel hump to be straddled by anyone sitting in the middle. The new model is more practical, too. Despite being designated as a saloon, the new model actually has a hatchback which opens to reveal a 445-litre space (417-litre in 4WD versions) that can be expanded by dropping the rear seat backs, creating a very useful long and flat load area. The BMW 3-Series may have a slightly larger boot, but it can't compete with the A5's hatchback versatility. Audi sent the diesel A5 for evaluation. It's been awhile since I've had the pleasure of driving a turbo diesel – a far cry from the mid-Noughties when, for a time, it seemed as if DERV was the future. On re-acquaintance it's easy to understand why. Fast, smooth and very economical, the TDI has to be the engine of choice if you do a lot of motorway miles thanks to its effortless mid-range shove and miserly fuel consumption. At any speed, the A5 is quiet and smooth thanks to those smooth aerodynamic looks and acoustically-tuned glass. It's a very fine place to spend a long journey. It's a pretty snappy mover as well. If you choose the Quattro all-wheel drive version 62mph comes up in less then seven seconds. More importantly, there's enough mid-range torque to accomplish overtakes with nothing more than a mere flex of your right foot. The A4 – and the Audi 80 before it – have been a mainstay of the German marque's range for the best part of three decades. It's not hard to see why. With its smart looks, posh interior, roomy cabin and flexible load carrying capacity, the A5 is all the car most people will ever need. As for the name change, I think if this car were a breakfast cereal it would be Coco Pops – a firm family favourite that was rebranded as Coco Krispies in 1998 prompting a national outcry before common sense won out and the chocolate-flavour breakfast reverted to its original name just months later. Whatever the badge says, it's a damn good car.
Reuters
4 hours ago
- Reuters
Canadian dollar outperforms most G10 currencies ahead of BoC rate decision
TORONTO, June 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday but was performing better than all the other Group of 10 currencies, as oil prices rose and investors awaited a Bank of Canada interest rate decision this week. The loonie was trading 0.1% lower at 1.3725 per U.S. dollar, or 72.86 U.S. cents, after trading in a range of 1.3702 to 1.3742. All the other G10 currencies posted bigger declines as the U.S. dollar (.DXY), opens new tab clawed back some of its recent broad-based losses. "With the BoC meeting ahead, investors are watching Governor (Tiff) Macklem for signals on rate cuts," said Kevin Ford, FX & macro strategist at Convera. "Sticky core inflation and an OK Q1 GDP have tempered expectations for further easing." The Canadian central bank will hold its benchmark interest rate at 2.75% on Wednesday as policymakers await further news on an economy that grew faster than expected last quarter, with at least two more cuts likely this year, according to a majority of economists in a Reuters poll. Overnight index swaps are pricing in a roughly 75% chance the BoC stays sidelined on Wednesday. The central bank left rates on hold in April for the first time since its easing campaign began in June last year. The price of oil , one of Canada's major exports, rose as the war in Ukraine ramped up and Iran was a U.S. nuclear deal proposal. U.S. crude oil futures were trading 1.7% higher at $63.58 a barrel. Wildfires burning in Canada's oil-producing province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude oil output, according to Reuters calculations. Canadian bond yields rose across a steeper curve, with the 10-year up 4.4 basis points at 3.270%.
