Thursday, February 11, 1999
Nissan Diesel To Slash Costs By 150
Bln Yen In 3 Years
TOKYO (Nikkei)--Nissan Diesel Motor Co. (7210), the truck-making
affiliate of Nissan Motor Co. (7201), aims to cut costs by 150 billion
yen by the end of fiscal 2001, President Hirofumi Nakazawa said
Thursday. The comprehensive restructuring plan, revealed at a
press conference on Thursday, includes closure of its Gunma plant,
merger of its sales and manufacturing forces, and job cuts of 3,000.
It plans to close 30 of its 46 sales bases nationwide by the end of
fiscal 1999 by integrating sales channels.
Of the 3,000 job cuts, about 80% will be completed by March 2000.
The company also plans to trim the balance of interest-bearing
debts by selling some assets.
These measures are expected to bring 60 billion yen in costcuts; it
hopes for an additional 90 billion yen in savings through other
measures such as the use of cheaper materials.
"Unprofitable companies can't survive the current tough business
environment," said Nakazawa. "We will make fiscal 1999 the
starting point for the restructuring."
Nakazawa stressed the company's determination to return to the
black in fiscal 1999.
Nakazawa denied that the restructuring drive was linked to tie-up
talks between Nissan Motor and DaimlerChrysler AG.
(The Nihon Keizai Shimbun Friday morning edition) |
