New boss plans Nissan revival but makes cuts
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• by Peter Lavrten
Nissan has unveiled revival plans to be implemented under the stewardship of new boss Carlos Ghosn.
The company says it is dedicated to recovering market presence and is set to take a number of tough decisions in the near future.
Numbers of workers are to be cut by 21,000 worldwide and costs are to be reduced by around 25.6 billion. Five of the troubled company's plants in Japan will close by 2002.
The company is also to reduce its number of vehicle platforms from the current 24 to 15 by 2002 and 12 by 2004. What this means in terms of the range of commercial vehicles offered is unclear, but Ghosn says the way for the company to survive is to Invest in new products.
Ghosn, previously executive vice president of Renault, took the top job at Nissan in June after the French company bought a huge stake in the company this April.
He says: Our objective is to free more resources from nonstrategic, non-core assets and invest more in our core business—oars—while at the same time significantly reducing our debt. The aim is to grow the company not to shrink it."
Nissan's debt is currently running at 27.9 billion, according to the company, down from 213bn in April.
The news is mitigated for workers in England by the announcement that the next-generation Primers car is to be built at the Sunderland plant.