New cars part of Nissan CEO's mantra to restore finances

Chief Executive Officer Makoto Uchida tells shareholders his goal is to reach positive cash flow during the latter half of the next fiscal year.The home market of Japan is the most crucial for Nissan and it will two electric-vehicle and four e-Power models by end of 2023.
By : Bloomberg
| Updated on: 29 Jun 2020, 10:17 AM
A showroom assistant wearing a protective mask and face shield, right, sprays hand sanitizer into a visitor's hands at the entrance of Nissan Motor's Ginza showroom in Tokyo. (Bloomberg)
A showroom assistant wearing a protective mask and face shield, right, sprays hand sanitizer into a visitor's hands at the entrance of Nissan Motor's Ginza showroom in Tokyo. (Bloomberg)
A showroom assistant wearing a protective mask and face shield, right, sprays hand sanitizer into a visitor's hands at the entrance of Nissan Motor's Ginza showroom in Tokyo. (Bloomberg)
A showroom assistant wearing a protective mask and face shield, right, sprays hand sanitizer into a visitor's hands at the entrance of Nissan Motor's Ginza showroom in Tokyo.

Nissan Motor Co. will need to return to positive cash flow and bolster its cash position to start paying out dividends again, Chief Executive Officer Makoto Uchida told shareholders at the Japanese automaker’s annual meeting on Monday.

Uchida, who took the helm of Nissan in December, said his goal is to reach positive cash flow during the latter half of the next fiscal year, or October 2021 through March 2022. Nissan is implementing a pay freeze for senior managers for at least six months as it seeks to turn the business around, he said.

Similar Cars

Find More Cars
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price
Nissan Magnite (HT Auto photo)
Nissan Magnite
18.75 kmpl | 999 cc | Manual | Petrol | 5 Person | FWD | 71 bhp | 96 Nm | 205 mm | 939 kg | 336 litres | 5 Gears | 1.0L B4D | No | 40 litres | Hrs | 750 Km | | No | Front & Rear | seconds | Kmph | 18 kmpl
₹4.99 - 10.05 Lakhs**Ex-showroom price
Renault Triber (HT Auto photo)
Renault Triber
999 cc | Petrol | Manual | 19 kmpl
₹5.12 - 7.98 Lakhs**Ex-showroom price
Renault Kiger (HT Auto photo)
Renault Kiger
999 cc | Petrol | Manual
₹5.45 - 10.09 Lakhs**Ex-showroom price
Renault City K-ze (HT Auto photo)
UPCOMING
Renault City K-ze
Electric | Automatic
₹6 - 10 Lakhs* *Expected Price
Renault Duster (HT Auto photo)
Renault Duster
1498 cc | Petrol | Manual | 14.19 kmpl
₹9.39 - 14.28 Lakhs**Ex-showroom price

(Also read: Nissan promises slew of new models in India, build on existing strengths)

Nissan is seeking to cut 300 billion yen ($2.8 billion) in annual fixes costs and introduce new models to jump-start sales after reporting a 671 billion yen loss for the latest fiscal year, the first deficit in a decade and the biggest in 20 years. The coronavirus pandemic has added to Nissan’s pain, following a turbulent year caused by the 2018 arrest of former chairman Carlos Ghosn. Nissan has enough funds to get through the crisis, Uchida said.

(Also read - Many Nissan cars in UK may be fitted with emission-cheating devices: Report)

“I will put Nissan’s growth back on track," Uchida said, adding that he was prepared to step down if he fails. “We will make the utmost effort to resume shareholder returns as soon as possible."

The dividends are important for Renault SA, Nissan’s alliance partner of 20 years and 43% shareholder, which relies on the cash to boost its own payouts. The French automaker is also cutting costs and dividends, as it weathers the downturn in global demand for automobiles.

File photo: The logos of car manufacturers Renault and Nissan are seen in front of dealerships of the companies in France.
File photo: The logos of car manufacturers Renault and Nissan are seen in front of dealerships of the companies in France. (REUTERS)
File photo: The logos of car manufacturers Renault and Nissan are seen in front of dealerships of the companies in France.
File photo: The logos of car manufacturers Renault and Nissan are seen in front of dealerships of the companies in France. (REUTERS)

Uchida emphasized the importance of the Japanese market, saying that the carmaker will introduce two electric-vehicle and four e-Power models by the end of 2023. “Boosting Nissan’s presence in the home market is critical," he said.

As part of its overhaul, the carmaker is eliminating hundreds of jobs at its Sunderland plant in northeast England, and is shuttering its Barcelona factories. It’s also reducing about 400 jobs in Brazil and about 200 jobs in Mexico.

At the meeting held at its headquarters in Yokohama, Nissan reduced the number of seats to about 400 and kept them apart as part of precautionary measure to prevent the risk of infections. Attendees wore masks and hand sanitizers were prepared. The meeting was streamed online.

First Published Date: 29 Jun 2020, 10:17 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city