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Jump start: Nissan seeks to cut €2.4bn costs

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On display: Nissan’s Ginza showroom in Tokyo, Japan

On display: Nissan’s Ginza showroom in Tokyo, Japan

Bloomberg

On display: Nissan’s Ginza showroom in Tokyo, Japan

Nissan will need to return to positive cash flow and bolster its cash position to start paying out dividends again, CEO Makoto Uchida told shareholders at the Japanese automaker's annual meeting yesterday.

Mr Uchida, who took the helm of Nissan in December, said his goal is to reach positive cash flow during the latter half of the next fiscal year, or October 2021 through March 2022. Nissan is implementing a pay freeze for senior managers for at least six months as it seeks to turn the business around, he said.

Nissan is seeking to cut 300bn yen (€2.4bn) in annual fixed costs and will introduce new models to jump-start sales after a 671bn yen loss for the latest fiscal year, the first deficit in a decade and the biggest in 20 years. The coronavirus pandemic has added to Nissan's pain, following a turbulent year caused by the 2018 arrest of former chairman Carlos Ghosn.

"I will put Nissan's growth back on track," Mr Uchida said. Nissan has enough funds to get through the crisis, he claimed, and vowed to stand down if he failed in his task.

Bloomberg

Irish Independent