How to fill the pit where Nissans chairman was arrested for laying off more than 10,000 employees?

category:Finance
 How to fill the pit where Nissans chairman was arrested for laying off more than 10,000 employees?


Data show that in fiscal year 2018 as of March 31, 2019, Nissans revenue was 11.57 trillion yen, down 3.2% from the same period last year, and its operating profit was 318.2 billion yen, down 44.6% from the same period last year, a new low for 10 years. The more dangerous figure is net profit, which is 31.1 billion yen, down 57.3% year-on-year, and is expected to halve further in fiscal year 2019. In addition, operating profit margin is 2.7%, down 2.1 percentage points compared with 4.8% in fiscal year 2017.

At the annual shareholdersmeeting, Nissan CEO Hiroshi Nishikawa was also helpless, admitting that he was responsible for the turmoil in the Japanese automaker since Carlos Ghosns arrest, hoping that the company would speed up the search for the right CEO. Nevertheless, he attributed Nissans poor performance in fiscal year 2018 to Ghosns strategic decision: In the extremely important American market, for many years, in order to stimulate sales, Ghosn has been relying on large discounts to expand market share, but neglected profit margins.

At the same time, Hiroshima also made some compromises, planning to restore its operating profit margin to 6% by 2022, instead of the previous target of 8%, and set a revenue target of 14.5 trillion yen, lower than the previous target of 16.5 trillion yen. In addition to Waterloo, Nissan is also facing Gones counterattack. Just two days ago, Ghosn, through his lawyer, accused Nissan and Mitsubishi of violating an employment contract between a Dutch joint venture company and him, and privately terminated the contract during his imprisonment, claiming 15 million euros. As for the authenticity of the layoffs and the progress of the lawsuit with Mr. Ghosn, a reporter from Beijing Business Daily contacted the head of Nissans China Media Liaison Center, but no specific reply had been received as yet. Source: Guo Chenqi_NBJ9931, Responsible Editor of Beijing Business Daily

In addition to Waterloo, Nissan is also facing Gones counterattack. Just two days ago, Ghosn, through his lawyer, accused Nissan and Mitsubishi of violating an employment contract between a Dutch joint venture company and him, and privately terminated the contract during his imprisonment, claiming 15 million euros.