Nissan dumps Datsun again to save $4 billion
Japanese car-maker set to unleash cost-cutting frenzy in a bid to slash overheads; could scuttle plans for right-hand drive TitanNissan has embarked on ambitious plans to cut $2.8 billion ($A4.3b) in costs as part of a huge restructuring program to save the struggling car-maker.
Now facing a huge drop in sales related to the COVID-19 pandemic, Nissan is tipped to release its dramatic restructuring plan on May 28, reports Bloomberg.
One of the victims of the high-profile cuts, which effectively pull a U-turn on former boss Carlos Ghosn's aggressive expansion, is set to be Nissan's reborn Datsun brand.
The born-again budget brand has struggled in both the Asian and Russian markets where Nissan bosses had hoped it would flourish.
The closure of vehicle production lines are also thought to have affected the brand's viability.
Another victim of the cost-cutting is said to be the car-maker's marketing and research and development departments, with undisclosed sources telling Bloomberg that aggressive savings are about to be made.
Known internally as the 'Performance Recovery Plan', the new series of cutbacks follow the high-profile crisis surrounding former company chairman and CEO Ghosn, who was arrested for financial misconduct but still denies those charges.
The fallout, plus the pandemic, has resulted in the car-maker returning its lowest profit in 11 years.
As well as Datsun, Nissan will reportedly axe loss-making model variants and that is rumoured to affect the full-size Titan pick-up, with both the single-cab and all diesel versions set to be culled.
All of its manufacturing facilities globally, except in China, will also be reviewed as part of the plan, with possible reductions in capacity on the way – although there are no more closures on the cards, says the Bloomberg insider.
As we've reported, in the future Nissan wants to be a smaller, more efficient car-maker working with a higher profit margin.
It also wants to replace or refresh its vehicle line-up more often and end the discounting culture in markets like the US, where some models can see up to $10,000 slashed off their retail prices.
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