Nissan entered austerity mode

Nissan entered austerity mode

Rishi Sunak Announces Austerity Measures Whilst Denying Austerity Will Return

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Chancellor, Rishi Sunak, has been announcing increased spending in public services and an end to austerity. However, his announcements make clear that public services are not going to get a spending boost and that it is the low paid workers who will be paying for the government’s wasteful spending in what is clearly more austerity.\n\n

Nissan entered austerity mode

Nissan Motor Co instructs its managers to cut nonessential costs as automaker grapples with slumping car sales and falling profits.

In particular, the manager was told to end unnecessary travel and promotional activities in order to «save every yen».

Working meetings, which were previously attended by three – four employees, now limited to a single Nissan representative.Nissan entered austerity mode Part of the meeting and dinners were completely canceled or replaced by video conferencing. The massive cost cuts come with the automaker’s decision to send its US employees on two-day January vacation. The travel ban also extends to U.S. personnel, where the drop in sales is even greater.

Nissan’s crisis is not financial, problems associated with the departure of several top managers and strained relationship with alliance partner Renault SA.

In April, the automaker launched an ambitious plan to revive sales and increase profits, but the business outlook deteriorated more than expected. In November, the automaker reported a 70% drop in operating profit in the second quarter and cut its full-year forecast to an 11-year low..

The automaker has good lines of credit and plenty of cash, including money in China that has accumulated in joint ventures over the years, a Nissan spokesman said..

Nissan shares slipped to their lowest since September 2011 this week after Jun Seki, chief operating officer and former CEO contender, said he was leaving Nidec Corp..