MOSCOW (Pakistan Point News / Sputnik - 25th May, 2020) The Japanese carmaker Nissan and the French manufacturer Renault are planning to announce spending cuts amounting to more than $5 billion in the coming week, the Wall Street Journal reports, citing sources familiar with the situation.
According to the newspaper, Nissan plans to announce another $3 billion in spending cuts, following cost savings totaling the same amount that were initiated this past July. In the space of 10 months, Nissan has reduced staffing levels by 15,000, and plans to cut car production by one million units, the newspaper stated.
Renault, which is on the verge of bankruptcy according to media reports this past week, plans to reduce structural costs by at least two billion Euros ($2.2 billion), the newspaper stated. Renault suffered its first net loss in 10 years in 2019, and the French government is reportedly preparing a financial aid package for the ailing carmaker.
According to the newspaper, official announcements from both manufacturers are expected in the coming week.
Renault and Nissan form part of the Renault-Nissan-Mitsubishi strategic alliance of carmakers. The organization has run into difficulties in recent years following a scandal involving former CEO Carlos Ghosn, who was alleged to have underreported his salary while the head of the automotive alliance. Ghosn fled Japan while under house arrest and announced on New Year's Eve that he had arrived in Lebanon.