Nissan plans on adopting $2.8 billion cost cutting measures

On Wednesday, Bloomberg reported that Nissan Motor Co plans on undertaking an annual $2.8 billion fixed costs restructuring as it braces for a drop in sales, which could complicate its recovery from years of poor profitability.

Following 3 years of poor profits, Nissan is set to announce its restructuring plan on May 28. It is its latest attempt to slash costs in areas including research and marketing.

Nissan’s board has yet to review the plans.

While most automakers are bracing for a big financial impact from the coronavirus, in Nissan’s case, its profits were dwindling even before the outbreak, forcing it to roll back the aggressive expansion plan pursued by ousted leader Carlos Ghosn.

Among the plans being considered is phasing out its Datsun brand which has been struggling in the Russian and in Asian markets; closing down an additional vehicle production line is also being considered.

Nissan’s spokeswoman declined comment.

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