The global auto market has yet to fully recover from the crash of 2008, but Nissan is ready to call its turnaround plan “mission accomplished”. Nissan revealed on Wednesday that it will soon disband a special task force put together to curtail financial losses.
Nissan has yet to completely turn around its business, but the Japanese automaker says it has stopped its financial bleeding. “We’re not losing money anymore,” Colin Dodge , a Nissan executive vice president, told Automotive News. “We can’t stay in recovery mode forever. Mr. Ghosn told me to use my best judgment about when to stop, and I think that might be pretty soon.”
Nissan lost $2.4 billion in the fiscal year that ended March 30.
Nissan managed to curtail its losses through production shifts, better supply chain management and better allocation of funds, with many of the changes happening in a matter of weeks. Nissan moved one of its CVT lines from Japan to China, with the new plant now capable of producing 400,000 units per year. Nissan also realigned its supply chain, eliminating potential risks that could surface down the road.
Nissan’s U.S. operations were also apart of the revamp, with the Japanese automaker claiming it can now be profitable at a sales level of 10.5 million units.
