Nissan recently appointed a new CEO, who almost immediately jumped into bad news delivery mode. Ivan Espinosa reported a $4.5 billion loss for the automaker in the last financial year and projected a further $1.38 billion loss in the first quarter of this fiscal year at today’s exchange rates.
Espinosa reported the numbers at a recent investor’s meeting, which was attended by a little over 1,000 of the automaker’s backers. The group had strong opinions about the company’s performance to date, with one leveling harsh criticism against former CEO Makito Uchida, saying “the capability of former CEO Makito Uchida as an executive is extremely low.” They also said the board members responsible for appointing him should leave the company, though the board understandably rejected that request.
Others said Nissan executives had shifted blame and responsibilities for the company’s turnaround to frontline workers by cutting their jobs. Espinosa also announced that Nissan would suspend dividend payments, which led to complaints from the crowd.
Nissan’s turnaround won’t be a cakewalk. The automaker has announced thousands of layoffs, and its much-hyped merger with Honda fell apart in dramatic fashion. It also plans to shutter a handful of production facilities globally, but changes in American trade policy have led it to increase output at its factory in Tennessee.
[Images: Nissan]
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