Global car carrier: Profits plunge 70%, more job cuts

Nissan Motor Co. reported its latest quarterly results yesterday afternoon after the tokyo market closed, with operating profit down about 70 percent year-on-year. Nissan also cut its full-year profit forecast for fiscal 2019 to its lowest level in 11 years.

Original title: Global car carrier: profit plummeted 70%, will cut more than 10,000 jobs! A hundred years of car change, where does the giant go?

Global car carrier: Profits plunge 70%, more job cuts

Nissan’s global car sales fell 7.5 percent to 1.27 million units in the second quarter of the July-September 2019 fiscal year, according to the results, and the company’s operating profit was 30 billion yen, or about 1.9 billion yuan, down about 70 percent from a year earlier and well below market expectations. Nissan also cut its full-year operating profit forecast for fiscal 2019 by 35 percent to Y150 billion, or about 9.6 billion yuan, the lowest level in nearly 11 years.

Global car carrier: Profits plunge 70%, more job cuts

Expand the remaining 74%

Nissan said its poor financial performance was linked to the recent strength of the yen, uncertainty about the global outlook and stagnation in the auto industry as a whole.

The analysis points out that Nissan’s current woes also highlight the chaos facing the company following the sacking of former chairman Carlos Ghosn.

Global car carrier: Profits plunge 70%, more job cuts

Nissan is currently implementing a global business recovery plan. Under the plan, Nissan would cut 12,500 jobs, or about 10 percent of its global workforce. And the company will cut capacity by 10% by 2023 to control costs.

Global car carrier: Profits plunge 70%, more job cuts

Nissan’s new chief executive, Mr. Naeda, will take over on December 1st, following mr. Nishikawa’s resignation. Nissan said it would not announce any new information until December 1. Nissan’s shares have fallen 19 per cent so far this year.

Global car carrier: Profits plunge 70%, more job cuts

Related: Ghosn was arrested four times in six months

Carlos Ghosn, the former chairman of Nissan, who was born in Brazil and joined the company in 1999 and has been nissan’s chief executive since 2001, took just two years under his leadership to turn a profit and be called Nissan’s “saviour”.

Mr. Ghosn also passed reforms to match the global car sales of Renault, Nissan and Mitsubishi to Toyota and Volkswagen. Mr Ghosn will no longer be chief executive from April 2017 but will remain chairman.

First arrest: On November 19, 2018, Ghosn was arrested in Tokyo for the first time, facing charges of financial misconduct and serious breach of trust, for allegedly underreporting about $82 million in wages during the financial crisis.

Second arrest: On December 4, 2018, the Special Search Department of the Tokyo District Attorney’s Office decided to re-arrest Mr. Ghosn on the grounds that prosecutors suspected him of underpaying him for a total of about 4 billion yen (about 240 million yuan) between 2015 and 2018.

Third arrest: On 21 December of the same year, the Special Search Department of the Tokyo District Attorney’s Office arrested Mr. Ghosn again on suspicion of “special malfeasance” under the Companies Act by transferring losses from private investment to Nissan Motor Co. in 2008. This is the third time Ghosn has been arrested.

It is worth noting that Tokyo prosecutors “re-arrested” Mr. Ghosn almost every time his detention was nearing his end, which led to Mr. Ghosn’s detention being rescheduled or extended.

On the afternoon of March 6, 2019, Ghosn was released on bail after paying $9 million, ending a 108-day detention.

Fourth arrest: On Thursday, April 4, 2019, Ghosn was arrested again on suspicion of misappropriating funds that Nissan paid to a sales agency in Oman, Middle East, Nissan also caused a total of about 560 million yen in losses, or about 33.9 million yuan, some of which went to Mr. Ghosn himself, there is suspicion of private use.

The Tokyo-based prosecutor said Nissan’s funds could also go to a U.S. investment firm with Mr. Ghosn’s son as CEO.

Global car carrier: Profits plunge 70%, more job cuts

Responsible Editor: Wang Yongsheng

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