Nissan Motor said to plan US$2.8 billion in cost cuts, book restructuring charges

Carmaker plans to phase out Datsun brand and cut one production line under the new measures

Nissan to unveil more information on midterm plan with its fiscal 2019 results on May 28: spokesperson

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Published: 2:03pm, 13 May 2020Updated: 9:58pm, 13 May 2020

Nissan Motor is planning to cut about 300 billion yen (US$2.8 billion) in annual fixed costs and book restructuring charges as the coronavirus pandemic further depresses the carmaker’s sales, a person with knowledge of the measures said.

Those initiatives are likely part of a three-year plan that will be unveiled along with financial results on May 28, calling for Nissan to take more drastic measures to turn its business around, said the person, asking not to be identified because the information isn’t public.

The Yokohama-based company will phase out the Datsun brand, shut down one production line in addition to the recently closed operation in Indonesia, and reach the reduced spending target this year by cutting marketing, research and other costs, the person added.

Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn, with an ageing car line-up and management paralysis denting its outlook. The carmaker warned last month it expects to post a loss for the latest fiscal year through March, as the pandemic closed showrooms in major markets and the economic fallout dented consumer demand.

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The plans still need to be reviewed by Nissan’s board and may change, people privy to deliberations around the restructuring plan said. The scale of the restructuring charge is still being determined, they said.