Legacy auto continues to thrive:
Nissan is doing worse than expected in the U.S., and its North American chairman is taking steps to cut costs across the company, slashing employee travel expenses and putting the entire U.S. organization on two days of unpaid furlough next month.Automotive News
Nissan Executives: We’ve got a plane to save the company! We’re not going to pay you! Nissan Employees: …Tweet
The company also will remain closed for two days after the New Year’s holiday, with employees forgoing pay Jan. 2 and Jan. 3.Automotive News
Be careful partying with Nissan employees this New Year’s or you could wake up January 4 with an insane hangover.
Valls informed Nissan employees that the move will translate to a 9.2 percent pay cut in January for those paid monthly. Employees paid biweekly will not be paid for those two days.Automotive News
That’s a good sneaky way to cut expenses 10%. It’s not a pay cut, it’s a holiday!
“I realize this news may be unsettling and that it will affect your personal lives and families,” Valls said in the memo.Automotive News
Oh good, at least they realize it. Maybe next time they’ll even try and prevent it!
Nissan Group’s U.S. sales fell 16 percent in November from a year earlier, with Nissan Division sales dropping 13 percent to 83,562 vehicles, and Infiniti sales diving 33 percent to 9,385. Through November, the automaker’s U.S. sales are down 7.8 percent, with the Nissan Division down 6.5 percent and Infiniti off by 19 percent.Automotive News
I’m sure they’ll start selling a ton of Leafs in January when all the employees are at home.
But the cost-cutting measures also foreshadow a potential industry downturn. New-vehicle sales are expected to come in nearly 3 percent lower for 2019, based on an average of industry forecasts.Automotive News
The Tesla effect: People don’t want to invest in out-of-date polluting gas cars anymore.
“We have taken a number of measures this fiscal year to try to fix the fundamentals and right-size the business to improve our results,” Valls said in the memo.Automotive News
It’s not downsizing, it’s “right-sizing”! Funny how nobody ever right-sizes their business up though…
Nissan has undergone a year of leadership upheaval following the November 2018 arrest in Tokyo of the automaker’s influential then-chairman, Carlos Ghosn, on charges of financial improprieties.Automotive News
Well, at least they’re not a fraud like some other auto companies $TSLAQ warned me about.Tweet