Nissan Motor Co. Unveils Turnaround Plan; Shuts Down Plants After Major Losses
Fighting against the subdued global demand and the Coronavirus pandemic, Nissan Motor Co. Ltd., a Japanese automaker, has now undertaken massive restructuring exercises. Reeling from a scandal, involving its former chairman, Carlos Ghosn, Nissan Motor has outlined a new plan to become a smaller and more cost-efficient car-maker after suffering its first annual loss in 11 years. However, the move has seen their company face major backlash from its employees. The announcement by Nissan to shut down its plant in Spain is an outcome of the massive protests by the employees.
The Barcelona plant shut down will result in 3,000 direct jobs being lost in Spain alone. So, how exactly is Nissan going about this turnaround plan? Apart from shutting down its plants, the problem for Nissan is not new. And even the company’s plan envisages a slow recovery over the next few years. Nissan has reported a 6.2 billion dollars annual net loss, the worst in 20 years.
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