Latest news with #CarlosGhosn
TimesLIVE
3 days ago
- Automotive
- TimesLIVE
Nissan offers buyouts to US workers, halts global pay rises
Cutting the US workforce runs counter to President Donald Trump's aim of creating jobs and boosting domestic manufacturing through initiatives including a 25% tariff on imported vehicles. Nissan's operating profit margin in North America including the US, its biggest market, worsened in the business year ended March, even as it sold more cars than a year before. It offered buyouts to Canton workers after launching a job cut plan in November and has followed that with another round. Analysts attributed Nissan's troubles to factors including an ageing line-up, a lack of hybrid models in the US and excessive focus on increasing output under former top executive Carlos Ghosn, whose near two-decade year tenure ended in 2018. Separately, Nissan on Tuesday said it had paid ¥646m (R80.2m) in compensation to former CEO Makoto Uchida and three other executive officers who left their positions at the end of March. Nissan has yet to disclose a full list of production sites it plans to close. At home in Japan, Oppama and one other plant are under consideration, sources told Reuters this month. Nissan has said it will consolidate Mexican and Argentinian pick-up truck production into a single Mexican site, and Renault will buy its stake in their joint Indian business. It has also said it would close a Thai plant by June. On Wednesday, Bloomberg News reported Nissan is considering raising more than ¥1-trillion from debt and asset sales which would include a syndicated loan guaranteed by the UK government.
Bloomberg
5 days ago
- Automotive
- Bloomberg
Nissan Aims to Raise $7 Bln Ahead of Loan Repayment Wall
00:00 What do we know about Nissan's planning? What? Nissan is planning to sell, issue and borrow here? Yeah, Essentially it's a combination of new financing as well as rolling over some existing obligations, namely that debt wall you just mentioned. But really, you know, it speaks to the need for the car maker to start raising some cash to keep its operations going, especially because, you know, we see the sort of excess cash position within the core automotive business really projected to shrink and almost dwindle to zero over the coming fiscal year, which ends in March of 2026. Well, just remind us why all of this is necessary. How bleak is the picture at Nissan right now? Yeah. I mean, it depends on how far back you want to go. We can go back to 2018 with the arrest of former chairman Carlos Ghosn. But really, you know, the issues that we're reporting about today stem from essentially a lack of products, fresh products to sell into Nissan's largest markets of North America, Japan and China, as well as the lack of hybrids, which are doing very well in the North American market. And then, of course, a lot of, you know, sort of management turmoil and missteps have led at least over the past few years to the current situation where we see, you know, Nissan going out and getting bond issuances in order. It's got convertibles. It's going to sell off some assets, including stakes in Renault and ASEC, battery maker, as well as sale and leaseback some of its real estate holdings, including its headquarters in Yokohama. And that is a very interesting syndicated loan from a group of banks that's going to be backed by U.K. export finance. That's really a new element that we haven't seen here before. And of course, part of the reason for that is Nissan's got such an important role in U.K. manufacturing. The biggest automaking hub in the UK is in Sunderland. I wonder how much the UK US trade deal could reverse some of this plan and actually help Nissan. Yeah, I mean, that's sort of still up in the air. Obviously, there are details to be known about the UK U.S. trade deal. But I think on paper, you know, the sort of assumption is that if you build parts and cars in the U.K. for export to the US, you know, Nissan may be able to avert some of the steep tariffs that are going to be imposed on cars made in Japan, namely 25%. Again, a lot of this is still up in the air, but at least, you know, this does kind of keep that option open. Of course, Nissan is also looking to shrink the number of its factories and to about ten from 17. Some of them are probably going to be right here in Japan. But, you know, the fate of the Sunderland factory. Well, you know, you can kind of read into it what you will.
The Drive
6 days ago
- Automotive
- The Drive
Nissan Selling the HQ Ghosn Built Would Prove No Cost Is Too Sacred to Cut
The latest car news, reviews, and features. Two decades ago, Ford famously mortgaged virtually every asset at its disposal under then-CEO Alan Mulally's plan to overhaul its crippled finances. Was it a sign of failure and desperation? Certainly, but it would prove prescient not even two years later when Detroit rivals General Motors and Chrysler both went hat-in-hand to the federal government asking for bailouts. Just three years later, under now-disgraced former CEO Carlos Ghosn, Nissan was building the 22-story high-rise in Yokohama that has been the company's home for more than 15 years. And now it might be for sale, Automotive News reports. This time around, it's not a member of America's 'Big Three,' but Japan's. Alongside Toyota and Honda, Nissan has spent decades as one of the highest-volume manufacturers on its side of the Pacific. Nissan's headquarters is the house that Ghosn built. He announced the move two years before Ford's comprehensive restructuring platform, and like Mulally, he was originally brought onboard to mount a corporate turnaround. Before he took the reins, Nissan was battling $20 billion in debt and a predominantly unprofitable Japanese lineup. Ghosn's ascendancy began with Renault's initial buy-in back in 1999, when he was named COO. By 2001, that first 'O' had become an 'E.' Getty Images Ghosn, who famously fled Japan in what amounted to a giant roadie trunk, maintains to this day that Japan's prosecution (or to hear him say it, persecution) is motivated by a desire to cast blame on an outsider, and in the process, prevent a French takeover of the beleaguered automaker—what may seem a quaint concern given Nissan's current financial desperation. History being cyclical, it seems oddly poetic that the new CEO, Ivan Espinosa, appears poised to divest the company of the very building it calls home in exchange for a cash injection that could amount to more than $650 million. Property sales alone won't erase Nissan's debt, but they would ease pressure on the company's staggering operating costs. Nissan lost $4.5 billion in the last quarter of its 2024 fiscal year alone—its second-largest drop in the past 25 years. An audit of assets it has available for liquidation put Nissan's headquarters building on the bean-counters' radar, and it's certainly not alone. According to AN , the company is eyeballing three domestic factories for potential closure, and a downsizing of its Tochigi assembly and testing facility has apparently not been ruled out. The Drive has reached out to Nissan for comment on this report and will update it with anything we should learn. Got a tip? Email tips@
The Advertiser
6 days ago
- Automotive
- The Advertiser
Nissan considering selling HQ to fund plant closures
Nissan may sell off its global headquarters in Yokohama, Japan to help finance the costs it will incur to close down seven factories and axe 20,000 jobs worldwide. According to the Nikkei, the company has placed its headquarters in Yokohama on the list of assets it might sell by the end of March 2026. Nissan's HQ is located on the banks on the Katabira River, only a few minutes walk from Yokohama station. Thanks to its prime location, it is estimated to be worth around ¥100 billion (A$1.07 billion). Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The current HQ was opened in 2009 when then-CEO Carlos Ghosn relocated the company's headquarters from Tokyo back to its spiritual home in Yokohama. The building contains an extensive gallery showcasing some of the automaker's most iconic models, race cars, and concepts. It's unclear if Nissan would move out of its current headquarters, or whether it would lease it back from its new owner. So-called lease back arrangements are common for companies undergoing financial stress, or those wishing to gain a pot of cash to fund certain projects. Money raised by the sale of the building and property would be used to pay for restructuring costs related to Nissan's upcoming plant closures and workforce reduction. The automaker said restructuring costs are expected to be ¥60 billion (A$640 million) in this current financial year alone. Nissan has been skating on thin financial ice for the last year-and-a-bit. Earlier this month it announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled a recovery plan dubbed Re:Nissan, which will see the company reduce its factory count from 17 to 10, and cut its global workforce by 15 per cent or 20,000 people, both by March 2028. A recent report indicates plants in Japan, Mexico, South Africa, Argentina and India are facing the axe. The company's plant in the UK, which produces the Qashqai and Juke compact SUVs, has been ruled safe, and the head of Nissan Oceania is "quietly optimistic" about the long-term future of Nissan's parts factory in Dandenong, Victoria. As part of the company's latest turnaround plan, Nissan will renegotiate its deals with suppliers, cut down on platforms, and reduce development times. It has also set up a cost-cutting "transformation office" with an initial staff of 300 experts who have been "empowered to make cost decisions". On top of this, development of vehicles and technology due for launch after March 2027 has been paused in order to allocate 3000 people to find more savings. MORE: Everything Nissan Content originally sourced from: Nissan may sell off its global headquarters in Yokohama, Japan to help finance the costs it will incur to close down seven factories and axe 20,000 jobs worldwide. According to the Nikkei, the company has placed its headquarters in Yokohama on the list of assets it might sell by the end of March 2026. Nissan's HQ is located on the banks on the Katabira River, only a few minutes walk from Yokohama station. Thanks to its prime location, it is estimated to be worth around ¥100 billion (A$1.07 billion). Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The current HQ was opened in 2009 when then-CEO Carlos Ghosn relocated the company's headquarters from Tokyo back to its spiritual home in Yokohama. The building contains an extensive gallery showcasing some of the automaker's most iconic models, race cars, and concepts. It's unclear if Nissan would move out of its current headquarters, or whether it would lease it back from its new owner. So-called lease back arrangements are common for companies undergoing financial stress, or those wishing to gain a pot of cash to fund certain projects. Money raised by the sale of the building and property would be used to pay for restructuring costs related to Nissan's upcoming plant closures and workforce reduction. The automaker said restructuring costs are expected to be ¥60 billion (A$640 million) in this current financial year alone. Nissan has been skating on thin financial ice for the last year-and-a-bit. Earlier this month it announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled a recovery plan dubbed Re:Nissan, which will see the company reduce its factory count from 17 to 10, and cut its global workforce by 15 per cent or 20,000 people, both by March 2028. A recent report indicates plants in Japan, Mexico, South Africa, Argentina and India are facing the axe. The company's plant in the UK, which produces the Qashqai and Juke compact SUVs, has been ruled safe, and the head of Nissan Oceania is "quietly optimistic" about the long-term future of Nissan's parts factory in Dandenong, Victoria. As part of the company's latest turnaround plan, Nissan will renegotiate its deals with suppliers, cut down on platforms, and reduce development times. It has also set up a cost-cutting "transformation office" with an initial staff of 300 experts who have been "empowered to make cost decisions". On top of this, development of vehicles and technology due for launch after March 2027 has been paused in order to allocate 3000 people to find more savings. MORE: Everything Nissan Content originally sourced from: Nissan may sell off its global headquarters in Yokohama, Japan to help finance the costs it will incur to close down seven factories and axe 20,000 jobs worldwide. According to the Nikkei, the company has placed its headquarters in Yokohama on the list of assets it might sell by the end of March 2026. Nissan's HQ is located on the banks on the Katabira River, only a few minutes walk from Yokohama station. Thanks to its prime location, it is estimated to be worth around ¥100 billion (A$1.07 billion). Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The current HQ was opened in 2009 when then-CEO Carlos Ghosn relocated the company's headquarters from Tokyo back to its spiritual home in Yokohama. The building contains an extensive gallery showcasing some of the automaker's most iconic models, race cars, and concepts. It's unclear if Nissan would move out of its current headquarters, or whether it would lease it back from its new owner. So-called lease back arrangements are common for companies undergoing financial stress, or those wishing to gain a pot of cash to fund certain projects. Money raised by the sale of the building and property would be used to pay for restructuring costs related to Nissan's upcoming plant closures and workforce reduction. The automaker said restructuring costs are expected to be ¥60 billion (A$640 million) in this current financial year alone. Nissan has been skating on thin financial ice for the last year-and-a-bit. Earlier this month it announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled a recovery plan dubbed Re:Nissan, which will see the company reduce its factory count from 17 to 10, and cut its global workforce by 15 per cent or 20,000 people, both by March 2028. A recent report indicates plants in Japan, Mexico, South Africa, Argentina and India are facing the axe. The company's plant in the UK, which produces the Qashqai and Juke compact SUVs, has been ruled safe, and the head of Nissan Oceania is "quietly optimistic" about the long-term future of Nissan's parts factory in Dandenong, Victoria. As part of the company's latest turnaround plan, Nissan will renegotiate its deals with suppliers, cut down on platforms, and reduce development times. It has also set up a cost-cutting "transformation office" with an initial staff of 300 experts who have been "empowered to make cost decisions". On top of this, development of vehicles and technology due for launch after March 2027 has been paused in order to allocate 3000 people to find more savings. MORE: Everything Nissan Content originally sourced from: Nissan may sell off its global headquarters in Yokohama, Japan to help finance the costs it will incur to close down seven factories and axe 20,000 jobs worldwide. According to the Nikkei, the company has placed its headquarters in Yokohama on the list of assets it might sell by the end of March 2026. Nissan's HQ is located on the banks on the Katabira River, only a few minutes walk from Yokohama station. Thanks to its prime location, it is estimated to be worth around ¥100 billion (A$1.07 billion). Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The current HQ was opened in 2009 when then-CEO Carlos Ghosn relocated the company's headquarters from Tokyo back to its spiritual home in Yokohama. The building contains an extensive gallery showcasing some of the automaker's most iconic models, race cars, and concepts. It's unclear if Nissan would move out of its current headquarters, or whether it would lease it back from its new owner. So-called lease back arrangements are common for companies undergoing financial stress, or those wishing to gain a pot of cash to fund certain projects. Money raised by the sale of the building and property would be used to pay for restructuring costs related to Nissan's upcoming plant closures and workforce reduction. The automaker said restructuring costs are expected to be ¥60 billion (A$640 million) in this current financial year alone. Nissan has been skating on thin financial ice for the last year-and-a-bit. Earlier this month it announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response, new Nissan CEO Ivan Espinosa unveiled a recovery plan dubbed Re:Nissan, which will see the company reduce its factory count from 17 to 10, and cut its global workforce by 15 per cent or 20,000 people, both by March 2028. A recent report indicates plants in Japan, Mexico, South Africa, Argentina and India are facing the axe. The company's plant in the UK, which produces the Qashqai and Juke compact SUVs, has been ruled safe, and the head of Nissan Oceania is "quietly optimistic" about the long-term future of Nissan's parts factory in Dandenong, Victoria. As part of the company's latest turnaround plan, Nissan will renegotiate its deals with suppliers, cut down on platforms, and reduce development times. It has also set up a cost-cutting "transformation office" with an initial staff of 300 experts who have been "empowered to make cost decisions". On top of this, development of vehicles and technology due for launch after March 2027 has been paused in order to allocate 3000 people to find more savings. MORE: Everything Nissan Content originally sourced from:
West Australian
7 days ago
- Automotive
- West Australian
Nissan considering selling HQ to fund plant closures
Nissan may sell off its global headquarters in Yokohama, Japan to help finance the costs it will incur closing down seven factories and axing 20,000 jobs worldwide. According to the Nikkei , the company has placed its headquarters in Yokohama on the list of assets it might sell by the end of March 2026. Nissan's HQ is located on the banks on the Katabira River, and is only a few minutes walk from Yokohama station. Thanks to its prime location, it is estimated to be worth around ¥100 billion (A$1.07 billion). Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now . The current HQ was opened in 2009 when then-CEO Carlos Ghosn relocated the company's headquarters from Tokyo back to its spiritual home in Yokohama. The building contains an extensive gallery showcasing some of the automaker's most iconic models, race cars, and concepts. It's unclear if Nissan plans to move out of the current headquarters, or if it will lease it back. So-called lease back arrangements are common for companies undergoing financial stress, or wishing to gain a pot cash to fund certain projects. Money raised by the sale of the building and property would be used to pay for restructuring costs related to Nissan's upcoming plant closures and workforce reduction. The automaker said restructuring costs are expected to cost ¥60 billion (A$640 million) in this current financial year alone. Nissan has been skating on thin financial ice for the last year-and-a-bit. Earlier this month it announced a loss of ¥670.9 billion (A$7.1 billion) for the financial year ending March 2025. In response new Nissan CEO Ivan Espinosa unveiled a recovery plan dubbed Re:Nissan, which will see the company reduce its factory count from 17 to 10, and cut its global workforce by 15 per cent or 20,000 people, both by March 2028. A recent report indicates plants in Japan, Mexico, South Africa, Argentina and India are facing the axe. The company's plant in the UK , which produces the Qashqai and Juke , has been ruled safe, and the head of Nissan Oceania is 'quietly optimistic' about the long-term future of Nissan's parts factory in Dandenong, Victoria. As part of the company's latest turnaround plan, Nissan will renegotiate its deals with suppliers, cut down on platforms, and reduce development times. It has also setup a cost-cutting 'transformation office' with an initial staff of 300 experts who have been 'empowered to make cost decisions'. On top of this development of vehicles and technology due after March 2027 has been paused in order to allocate 3000 people to find more savings. MORE: Everything Nissan
