Latest news with #ChristianMeunier
Scottish Sun
a day ago
- Automotive
- Scottish Sun
Major car firm ‘discontinuing cheapest model & halting pay rises' – weeks after axing 20,000 jobs and £4bn losses
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR car firm is reportedly discontinuing its cheapest model and halting pay rises just weeks after announcing £4billion in losses. The struggling car maker had announced plans to axe over 20,000 members of staff due to soaring production costs and disappointing sales. Sign up for Scottish Sun newsletter Sign up 2 The Japanese automaker has been struggling financially recently Credit: Getty 2 Cost-cutting measures will already see thousands of job losses with multiple factory closures Credit: AFP Cash-strapped Nissan, Japan's third-largest carmaker, is already facing billions in losses - its worst annual loss in a quarter century. Nissan is looking to raise £5.2billion to stay afloat, with UK Export Finance underwriting a £1billion loan - which will support the beleaguered company. Now, the company has started offering buyouts to US workers and has suspended merit-based wage increases worldwide, reports Reuters. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi. Salaried workers in human resources, planning, information technology and finance have also been offered similar packages. Merit-based pay increases have also been suspended worldwide by Nissan for the current business year, in a separate email seen by Reuters. Christian Meunier, Nissan America's chairman, said the buyouts are 'crucial for Nissan's comeback' in the US, its most important market. 'While substantial efforts have been made in the US to help right-size Nissan, we need to take additional, limited, strategic action here at a local level,' Meunier said in an email. And Nissan has also discontinued its cheapest model, the manual-equipped Versa, according to reports. The Japanese automaker halted making the Versa with the five-speed manual at its Aguascalientes, Mexico, factory, according to Automotive News. The publication stated that a "person with knowledge of the matter" revealed that the most affordable new car on the market would see "production cease". It is understood that the rest of the Versa lineup will continue as usual but this is yet another huge blow to the carmaker. Japanese giant unveils its new bargain EV with quirky 'bug eye' headlights It comes after reports the manufacturer is planning to cut its number of factories from 17 down to 10. This has prompted fears that the brand's Sunderland factory could be under threat. While Nissan has not confirmed the fate of its only UK factory, its CEO Ivan Espinosa has insisted that more electric cars will be produced there. It is hoped that the £1billion loan from Nissan's lenders, underwritten by The Government, will protect the site. The huge cash injection is just a fifth of the 1Trillion Yen needed by the company to survive. It will also look to issue as much as 630billion yen in convertible securities and bonds, including high-yield and euro notes. Reportedly, the firm is looking to sell-and-lease-back its Yokohama headquarters alongside several properties in the United States. Finally, the struggling car manufacturer is eyeing a sale of its stakes in Renault and battery maker AESC Group. The aggressive fundraising plans underscore Nissan's rapidly deteriorating financial and operational position, despite efforts by newly appointed chief executive Ivan Espinosa to turn the company around. Development on other Nissan models has been paused, whilst the company tries to balance its books. Work on all 'advanced and post-FY26 product activities' has been paused, though Nissan has not confirmed which particular vehicles will face suspension.
The Sun
a day ago
- Automotive
- The Sun
Major car firm ‘discontinuing cheapest model & halting pay rises' – weeks after axing 20,000 jobs and £4bn losses
A MAJOR car firm is reportedly discontinuing its cheapest model and halting pay rises just weeks after announcing £4billion in losses. The struggling car maker had announced plans to axe over 20,000 members of staff due to soaring production costs and disappointing sales. 2 2 Cash-strapped Nissan, Japan's third-largest carmaker, is already facing billions in losses - its worst annual loss in a quarter century. Nissan is looking to raise £5.2billion to stay afloat, with UK Export Finance underwriting a £1billion loan - which will support the beleaguered company. Now, the company has started offering buyouts to US workers and has suspended merit-based wage increases worldwide, reports Reuters. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi. Salaried workers in human resources, planning, information technology and finance have also been offered similar packages. Merit-based pay increases have also been suspended worldwide by Nissan for the current business year, in a separate email seen by Reuters. Christian Meunier, Nissan America's chairman, said the buyouts are 'crucial for Nissan's comeback' in the US, its most important market. 'While substantial efforts have been made in the US to help right-size Nissan, we need to take additional, limited, strategic action here at a local level,' Meunier said in an email. And Nissan has also discontinued its cheapest model, the manual-equipped Versa, according to reports. The Japanese automaker halted making the Versa with the five-speed manual at its Aguascalientes, Mexico, factory, according to Automotive News. The publication stated that a "person with knowledge of the matter" revealed that the most affordable new car on the market would see "production cease". It is understood that the rest of the Versa lineup will continue as usual but this is yet another huge blow to the carmaker. It comes after reports the manufacturer is planning to cut its number of factories from 17 down to 10. This has prompted fears that the brand's Sunderland factory could be under threat. While Nissan has not confirmed the fate of its only UK factory, its CEO Ivan Espinosa has insisted that more electric cars will be produced there. It is hoped that the £1billion loan from Nissan's lenders, underwritten by The Government, will protect the site. The huge cash injection is just a fifth of the 1Trillion Yen needed by the company to survive. It will also look to issue as much as 630billion yen in convertible securities and bonds, including high-yield and euro notes. Reportedly, the firm is looking to sell-and-lease-back its Yokohama headquarters alongside several properties in the United States. Finally, the struggling car manufacturer is eyeing a sale of its stakes in Renault and battery maker AESC Group. The aggressive fundraising plans underscore Nissan's rapidly deteriorating financial and operational position, despite efforts by newly appointed chief executive Ivan Espinosa to turn the company around. Development on other Nissan models has been paused, whilst the company tries to balance its books. Work on all 'advanced and post-FY26 product activities' has been paused, though Nissan has not confirmed which particular vehicles will face suspension.
The Irish Sun
a day ago
- Automotive
- The Irish Sun
Major car firm ‘discontinuing cheapest model & halting pay rises' – weeks after axing 20,000 jobs and £4bn losses
A MAJOR car firm is reportedly discontinuing its cheapest model and halting pay rises just weeks after announcing £4billion in losses. The struggling car maker had announced plans to due to soaring production costs and disappointing sales. 2 The Japanese automaker has been struggling financially recently Credit: Getty 2 Cost-cutting measures will already see thousands of job losses with multiple factory closures Credit: AFP Cash-strapped Nissan , Japan's third-largest carmaker, is already facing billions in losses - its worst annual loss in a quarter century. Nissan is Now, the company has started offering buyouts to US workers and has suspended merit-based wage increases worldwide, reports Reuters. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi. Read More in Motors Salaried workers in human resources, planning, information technology and finance have also been offered similar packages. Merit-based pay increases have also been suspended worldwide by Nissan for the current business year, in a separate email seen by Reuters. Christian Meunier, Nissan America's chairman, said the buyouts are 'crucial for Nissan's comeback' in the US, its most important market. 'While substantial efforts have been made in the US to help right-size Nissan, we need to take additional, limited, strategic action here at a local level,' Meunier said in an email. Most read in Motors And Nissan has also discontinued its cheapest model, the manual-equipped Versa, according to reports. The Japanese automaker halted making the Versa with the five-speed manual at its Aguascalientes, Mexico, factory, according to The publication stated that a "person with knowledge of the matter" revealed that the most affordable new car on the market would see "production cease". It is understood that the rest of the Versa lineup will continue as usual but this is yet another huge blow to the carmaker. Japanese giant unveils its new bargain EV with quirky 'bug eye' headlights It comes after reports the manufacturer is planning to cut its number of factories from 17 down to 10. This has prompted fears that the brand's Sunderland factory could be under threat. While Nissan has not confirmed the fate of its only UK factory, its CEO Ivan Espinosa has insisted that It is hoped that the £1billion loan from The huge cash injection is just a fifth of the 1Trillion Yen needed by the company to survive. It will also look to issue as much as 630billion yen in convertible securities and bonds, including high-yield and euro notes. Reportedly, the firm is looking to Finally, the struggling car manufacturer is eyeing a sale of its stakes in Renault and battery maker AESC Group. The aggressive fundraising plans underscore Nissan's rapidly deteriorating financial and operational position, despite efforts by newly appointed chief executive Ivan Espinosa to turn the company around. Development on other Work on all 'advanced and post-FY26 product activities' has been paused, though Nissan has not confirmed which particular vehicles will face suspension.
Forbes
3 days ago
- Automotive
- Forbes
Nissan's On The Ropes - Will The Brand Survive?
It's anyone's guess what's in store for Nissan, but the legendary maker of some pretty good cars - including my 1982 Datsun 210 - is currently getting the shallacking of its life. Lafayette - April 11, 2025: Nissan Armada SL 4WD display at a dealership. Nissan offers the Armada ... More with a 425HP 3.5L Twin-Turbo V6 engine. MY:2025 The Japanese automaker just slashed costs in a desperate attempt to stay on the road. According to Reuters, 20,000 jobs were axed, seven factories shut down and no one's getting raises. Buyout packages have been offered at their Canton, Mississippi plant—plus cutting salaried folks in HR, finance, IT and planning. A lot of things. Much of Nissan's lineup can be politely described as 'old'. The company's operating profits dropped 90% in the first half of the fiscal year. What's causing it? Weak sales in North America and China, which happen to be two of the biggest car markets on Earth. "While substantial efforts have been made in the U.S. to help right-size Nissan, we need to take additional, limited, strategic action here at a local level," Nissan Americas Chairman Christian Meunier said in a shared company-wide email. The plan is "crucial for Nissan's comeback," he said. On Tuesday, Nissan reported it paid a total of 646 million yen (approximately $4.5 million) in compensation to former CEO Makoto Uchida and three other executive officers who stepped down at the end of March. Nissan has not released a complete list of production sites slated for closure. However, in Japan, the Oppama plant and one other are under consideration, say insiders. *In Latin America, pickup truck production will be consolidated into a single plant in Mexico, ending production in Argentina. *Nissan has also announced the closure of a plant in Thailand by June. *Renault will acquire Nissan's stake in their joint business operations in India. According to a report by Bloomberg News, Nissan is exploring options to raise over 1 trillion yen through a combination of debt and asset sales. This includes a potential syndicated loan backed by the UK government. Sedans: The Versa, Sentra, and Altima are all small vehicles designed to be relative bargains and achieve decent mileage. But all these vehicles have been around for many years. SUVs: The Kicks, Rogue, Murano, Pathfinder, and Armada represent Nissan's diverse SUV offerings, from compact to full-size - and also are long in the tooth. Trucks: The Frontier Electric Vehicles: The Ariya and Leaf EVs Sports Car: The Z's always been a favorite, and a test two years ago proved a fun, exciting firecracker. The devastating crash of the economy and bankrupcies faced by Ford, GM and Chrysler in 2008 proved no company is 'too big to fail.' No. Owners will still be serviced by dealers, the company says. It's either a comeback story in the making—or a slow-motion exit.
Business Times
3 days ago
- Automotive
- Business Times
Nissan offers buyouts to US workers, halts global pay rises, internal e-mails show
[TOKYO] Japan's Nissan has started offering buyouts to US workers and has suspended merit-based wage increases worldwide, internal e-mails reviewed by Reuters showed, as the automaker expands cost cuts amid weak performance in key markets. CEO Ivan Espinosa announced a new round of cost cuts this month that include closing seven production sites globally and cutting 11,000 more jobs, taking its total planned workforce reduction to around 20,000. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi as well as to salaried workers in human resources, planning, information technology and finance, showed one email sent last week. 'While substantial efforts have been made in the US to help right-size Nissan, we need to take additional, limited, strategic action here at a local level,' Nissan Americas chairman Christian Meunier said in the email. The plan is 'crucial for Nissan's comeback,' he said. Reuters could not determine how many people have been offered buyouts or how many have accepted. A separate email reviewed by Reuters showed Japan's third-biggest automaker has also suspended merit-based pay increases globally for the current business year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The automaker said in a statement that Nissan North America is offering a voluntary separation programme to a limited group of US salaried employees. It declined to give more details as the process is ongoing. Cutting US workforce runs counter to President Donald Trump's aim of creating jobs and boosting domestic manufacturing through initiatives including a 25 per cent tariff on imported vehicles. But 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 earlier. It offered buyouts to Canton workers after launching a job-cut plan in November and has now followed that up 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 646 million yen (S$5.8 million) 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 that 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 that Nissan is considering raising more than one trillion yen from debt and asset sales which would include a syndicated loan guaranteed by the UK government. REUTERS
