business

Nissan profit nose-dives 57.3%

73 Comments
By YURI KAGEYAMA

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73 Comments
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I hope someone like Renault or China swoops in. That would really make for an interesting predicament!

16 ( +21 / -5 )

Saikawa also brushed off a reporter's question about his resignation. He said he planned to hand over the reins to another leader "when the timing is right."

For now, he said, he needs to focus on a turnaround.

Which we all he know he can't do. He needs to stay in charge to keep the Ghosn facade going and cover his tracks.

He blamed what he called an overly aggressive sales growth strategy spearheaded by Ghosn, though Saikawa himself has faced criticism over his leadership since he became CEO in 2017.

Typical Japanese behavior is to blame others to save face. We already knew Saikawa was incompetent which explains Ghosn's plan to fire Saikawa.

23 ( +24 / -1 )

Saikawa apologized to customers and shareholders for the shoddy results, giving a short bow rather than the usual deep bow held for nearly a minute by Japanese executives apologizing for corporate wrongdoing.

Seems to be a bit of a habit with Saikawa :

http://gintruth.com/gnt/wpver/?p=3781

16 ( +17 / -1 )

poetic justice

23 ( +24 / -1 )

Just ditch the ugly v-motion grille and the sales should pick back up.

-4 ( +2 / -6 )

From the link I posted :

I’d be wasting my time waiting for an apology from Nissan, but then again, looking at the picture I mentioned at the top of this article, I wouldn’t want their half-baked-please-forgive-me-for-terrible-service-I-really-mean-it bow/apology. Hands by your side firmly Mr.Saikawa, you of all people should know better

10 ( +10 / -0 )

In the end, Nissan will be judged on their performance post Ghosn, regardless of his legal situation.

The world and Japan will be seeing this with hindsight 6 months from now, and Nissan and its leaders know that its sink or swim time.

12 ( +12 / -0 )

Nissan is more concerned with keeping itself Japanese than producing cars.

28 ( +30 / -2 )

and they stabbed the only capable person to bring them up again in the back....

16 ( +19 / -3 )

Not really surprising, is it?

Kill the golden goose and there are no more golden eggs.

16 ( +19 / -3 )

Ironic, kill the proverbial golden goose and see what happens! Saikawa can blame his mentor all he wants, but if Nissan does not show real positive growth in the next year or two, he too will be gone!

11 ( +12 / -1 )

I’m reading in the news here that Nissan is going to lay off 4800 workers. For starters I guess. Looks like Nissan’s management is recalling as to how Ghosn managed to turn the company around 20 years ago.

11 ( +12 / -1 )

I predicted this from the day they underhandedly backstabbed and arrested Ghosn. A drop in profits of over 50% in less than six months is impossible to recover from. What’s the bet they are going to try to blame Ghosn for this too? Bye bye Nissan! Reap what you sew!

14 ( +16 / -2 )

Good!

12 ( +13 / -1 )

Saikawa, with blustering self-righteousness, drives the car against the wall.

9 ( +10 / -1 )

Karma? Serves you right

9 ( +10 / -1 )

I noticed that they placed blame on everything except a dramatic drop in sales due to the people switching to other car manufactures ....... like me. I know so many people, who believe Carlos is guilty, are not happy with how Nissan handled the Carlos case.

6 ( +8 / -2 )

Kobe White Bar OwnerToday

Good!

Louie

Karma? Serves you right

Took the words right out of my mouth. I hope they go bankrupt.

7 ( +9 / -2 )

Saikawa blaming the loss on all and everything, with the exception of the mistakes he himself and his buddies make (made). That's the easiest way, of course. So how come everything was int the "green" when Ghosn was "the man"?

12 ( +13 / -1 )

Lolololololololololoololololololol

China to the rescue!!!!!!

-5 ( +3 / -8 )

If Ghosn has been “actively” diverting funds to his own pockets for years, you would think it would have shown up in statements like this years earlier. Interesting how after cutting him off completely from everything they suddenly report such a financial problem! Me smells a stinky fish!

14 ( +15 / -1 )

oh well, until the Ghosn fiasco I actually thought I'd buy a Nissan.... always wanted a GTR... but now I know I'll never buy a Nissan, no matter how good of a car they produce.... disgusted with they way everything went down.

19 ( +21 / -2 )

I love it. I hope Nissan crashes into dust.

7 ( +10 / -3 )

Nissan is more concerned with keeping itself Japanese than producing cars.

This is Japan in a nutshell. Look I am Japan. I am in a nutshell.

18 ( +20 / -2 )

Nissan is more concerned with keeping itself Japanese than producing cars.

I think they are more concerned about profit tbh. 50% lesson profit is a huge drop, I wonder if some of the board members don't want Saikawa out as well?

9 ( +10 / -1 )

A 50% drop in profit indicates new management is required immediately. If I worked for Nissan I would go on strike if the board did not take the initiative. Hopefully there will be a CEO change by the end of the month.

5 ( +6 / -1 )

He became CEO in 2017, so how long will things remain Ghosn's fault?

14 ( +15 / -1 )

Saikawa has good fashion sense. Nice eyeglasses and suit... WTF

7 ( +8 / -1 )

lolololol @nissan

4 ( +5 / -1 )

.

Why is Saikawa still there?

.He can't work his way out of a wet paper bag, much less move Nissan forward !

.

8 ( +8 / -0 )

Nissan's failure and the current state of Japanese industry owes much to the antiquated education system. Those who boomed this country in the 60s and 70s were not Tokyo University graduates. Two examples are Konosuke Matsushita, who founded Panasonic and Kakuei Tanaka. As far as I know, they didn't graduate high school, let alone university.

The Japanese education system has produced a generation of do-less oyajis like Sakaiwa. And it is probably some of these and some ultra right wing LPD members that can't stand gaijin succeeding where they failed that are behind the Ghosn hatchet job.

15 ( +15 / -0 )

I'd like to see how much Saikawa's personal performance bonus nose-dived this year. A pound to a penny says he got an increase on last year. Snouts in the trough.

6 ( +8 / -2 )

Saikawa is Nissan's CEO since 2017, he can't blame Ghosn for everything. I would have loved to see the quarter by quarter figures.

7 ( +8 / -1 )

50% drop in profits needs to be seen in light of other car companies' profits to have any meaning. We all know Saikawa is a yes man but the market trend is bigger than this scandal.

6 ( +6 / -0 )

Saikawa looks defeated already. There is a market for electric cars, Tesla, and Leaf. Someone crunched the numbers and figured out that if the 1.4 billion people in China lived the standards of living in the US and produced the carbon footprint of the US, then China would destroy the planet. I think China is adamant on going green and using electric cars and there is something there for Tesla and a Nissan. Nissan will be fine in the long run. Just let karma take its course and let Nissan bottom out first.

3 ( +4 / -1 )

Saikawa couldn't care less about profits at this point!!

His mission is accomplished: to remove Ghosn and ensure that J management is in control going forward!!

Everything else is secondary.

He will do his deep bows all day long, utter his moshiwake gozaimasens to anyone and everyone, and just reiterate his earnest desire to help Nissan "recover".

And in a couple of years, he'll get binned, replaced by another faceless J manager, and he will get some lucrative gig somewhere as a reward from J Inc for ridding Nissan of the foreigners!!

15 ( +15 / -0 )

When your company backstabs the only capable leader to stear the ship and put in charge a stinking rat, this is what happenes.

10 ( +11 / -1 )

So anyone with Nissan, is it time to sell within next few months? What do u think? Then Toyota? Honda?

I'm thinking just smaller one, Yaris or Auris, or Jazz whatever the stupid name is, just smaller 5 door is enough. Wait, but i have BMW.

3 ( +3 / -0 )

It's looking like it was a big mistake to railroad Ghosn.

What's up with that Crossing monstrosity in the upper left?

9 ( +9 / -0 )

As it was in the beginning it shall be in the end. Nissan was once rescued from bankruptcy only to now accelerate itself back to fiscal turmoil after ousting it’s savior and visionary. It shows that despite all of Ghosn’s efforts, Nissan could not be saved from itself, its nationalist ideologies, and its blindness by emotion over business logic. Nissan will go down in history as one of the most intriguing business case studies ever!

8 ( +8 / -0 )

Well if this isn’t poetic justice I don’t know what is. Even if Ghosn is guilty Nissan should have handled the situation better. But, like they sometimes do: blame it on the foreigner!

7 ( +8 / -1 )

Saikawa says that he will recover the company in 2-3 years. At this rate of fiscal degradation, will there be a Nissan to recover in 2-3 years?

8 ( +8 / -0 )

Surprised he didn't say that Ghosn stole all the money!!  Bit sad as they make some great cars.  But also make some rubbish, and too much of it.

2 ( +3 / -1 )

The demise of Nissan will happen so quickly that it’ll be studied by first year business students around the world within ten years. How one bad decision can lead to a domino effect of pain. And what a disgrace this whole fiasco has proven to be to this majestic nation. Pig headed collectivist fools at the helm. Thought we’d seen the last of them in Heisei.

Well this one is going to be the perfect example of what NOT to do to a global brand. On the flip side lets hope it speeds up a more sophisticated national mindset and much overdue conversations are had. You either live as an example for others or as an example of what NOT to become. Big choices ahead.

9 ( +9 / -0 )

Ghosn was in charge of this expansionsim with small margin/quick return policy, which finally took this nosedive. Anybody can disagree? The only difference could be, if any, his magical skills to dress up financial statements

-5 ( +0 / -5 )

Good.

2 ( +3 / -1 )

Saikawa says that he will recover the company in 2-3 years. At this rate of fiscal degradation, will there be a Nissan to recover in 2-3 years?

They made $3 billion in profit. Your worries may be a little premature.

-1 ( +2 / -3 )

Had made up my mind not to ever buy a nissan even before the Ghosn fiasco. Their cars have serious quality issues, the leather (cheap plastic) uphostery of my infiniti M35 cracked and got torn after 6 years and the roof clothing came down as well which is unthinkable of a 68,000 dollar luxury sedan.

5 ( +6 / -1 )

@Strangerland,

You’re not looking ahead far enough:

“Yokohama-based Nissan said profit for the fiscal year through March 2020 will drop to 170 billion yen ($1.5 billion), as its earnings are slammed by restructuring and product development expenses combined with currency-related losses and rising material costs.”

It’s already difficult for car companies to survive in this globally competitive auto industry. With projections of further profit declines coupled with rising expenses, other car companies will eat Nissan’s market share for lunch. Unless current executives use similar tactics as Ghosn (which current executives appear to criticize so heavily), Nissan will simply run out of gas!

8 ( +8 / -0 )

They'll be fine. 1.5 billion DOLLARS in profits is nothing to sneeze at.

-1 ( +1 / -2 )

Nissan profit nose-dives 57.3%

I can't help gloat about this headline.

But remember folks, Japsn always wants it's pound of flesh. Nissan are already filing for exagetated damages against Ghosn (who is still a hostage to Japans so-called legal system).

They will stop at nothing to retrieve that money. Be on guard for more dirty little tricks.

Don't expect Japans useless, fit for nothing judges to even recognise dirty tricks.

6 ( +7 / -1 )

Nissan are already filing for exagetated damages against Ghosn (who is still a hostage to Japans so-called legal system).

This is how they're going to do their business. Shareholders should opt out now. There's no future for Nissan because they'll stick to the past until they run the company down to the ground. Or they will sell to China before that happens.

The oyaji's of this generation is just bad.

6 ( +6 / -0 )

Chief Executive Hiroto Saikawa continued presence is synonymous with Nissan dreadful brand identity and balance sheet failure.

Hiroto Saikawa is an example of the mangement definition of entitled seniority over genuine success, gained from proven innovative performance driven achievement.

It is frankly sickening to hear Hiroto Saikawa vomiting out his deceitful brand of blame former chairman Carlos Ghosn culture.

Carlos Ghosn is a ruthless corporate hyena, however never denied the fact when decisions had to be taken to cut costs.

Hiroto Saikawa fork tongue abasement and betrayal of Ghosn is odious and deplorable.

8 ( +8 / -0 )

With a person like saikawa, what do u expect ???.This is a case of bad Japanese co-workers. People who do not know , what they are doing but wants to be famous in the lime light and rob the real working boss of his rights by back-stabbing actions. I expect Nissan to go bankrupt as they have done before Carlos. I will never support Nissan until saikawa & his gang are out.

6 ( +6 / -0 )

I have sold all my shares at Nissan, just simple decision , no confidence in a management that is good only at back-stabbing actions and negative actions when they are themselves part of this act.

8 ( +8 / -0 )

it looks like Nissan is on a suicide mission. I just hope the Mr G has a fair trial, and he proves that he is innocent ( or guilty) on these charges, once the trial is over, assuming he's innocent, what will he do next? he can't go back to to Nissan/Renault, I can't see him working in a super market filling shelfs,

3 ( +3 / -0 )

Snake Saikawa may your profits drop even more...

9 ( +9 / -0 )

I hope someone like Renault or China swoops in. That would really make for an interesting predicament!

So now we're taking China's side over Japan?

-6 ( +1 / -7 )

At least they are still making a profit, and the government doesn't have to bail them out (unlike in the US).

-6 ( +1 / -7 )

Hahahaha! No pity. We all saw this coming. Pity they jumped so hard and so fast at putting away the foreign CEO that they can't possibly walk it back and ask them to save the company again. Nissan is done, and good riddance. Saikawa, the coward, couldn't even give the usual bow, and blames Ghosn despite being literally part of the decision process he blames.

6 ( +7 / -1 )

You’re not looking ahead far enough:

“Yokohama-based Nissan said profit for the fiscal year through March 2020 will drop to 170 billion yen ($1.5 billion), 

You mean that part that talks about $1.5 billion in profit?

-5 ( +1 / -6 )

Good! You reap what you sow!

2 ( +2 / -0 )

Hope it was worth ruining a company again after it was rebuilt by the person you exiled & treated like inhumanly. Xenophobia amongst high ranking businesses men in one of the most homogeneous countries on the planet. Good luck

3 ( +4 / -1 )

and some ultra right wing LPD members that can't stand gaijin succeeding where they failed that are behind the Ghosn hatchet job.

if you dont live in Japan, you might find this statement disagreeable, but living here, I find this to be 100% spot on.

Also, Japanese management dont have a good track record of righting listing ships. Im sure this J drone will sink the company.

6 ( +6 / -0 )

What can anyone expect from a back-stabbing coward, liar and not capable person taking control of the ship Nissan ???. 3 Years more ???. when he, saikawa had been on the job for so long. This person game is just capable of speaking and blaming his only boss that tries to accept him for what he is. I have been in Japanese management for 3 decades & 2 years. Such people like saikawa are bad for any company, big or small.

3 ( +3 / -0 )

it looks like Nissan is on a suicide mission. I just hope the Mr G has a fair trial, and he proves that he is innocent ( or guilty) on these charges, once the trial is over, assuming he's innocent, what will he do next? he can't go back to to Nissan/Renault, I can't see him working in a super market filling shelfs,

Well, whatever happens, a side of Japan has been exposed for what it really is. Nasty. (coupled with a legal system not fit for pupose).i

Mr. Ghosn maybe on trail, and Japans legal system is on trail too.

2 ( +2 / -0 )

I really hope we heard news very soon of nissan's collapse. They really deserve it for their disgusting treatment of Ghosn.

4 ( +4 / -0 )

The question here is one of cause and effect. Ghosn was initially arrested on 19 November of last year. For the fiscal year ending in March 2019, Nissan's profits were down 57.9% from the previous fiscal year (from 746.9 billion yen to 319.1 billion yen). So the question is: Hypothetically if Ghosn had never been arrested and he was in the same position at Nissan now that he occupied before November 2018, would Nissan's profits still have plummeted as they did?

We'll never know, but it seems like a huge amount of turmoil was caused by Ghosn's arrest and did not contribute to the fiscal health of Nissan. Such are the risks of criminalising what was essentially an internal board dispute at a private company.

4 ( +4 / -0 )

@ Masswipe

Saikawa did not work for the business the whole last year (he somewhat admitted it). He was just focus on combatting the Renault merger and getting Ghosn arrested.

Then making car and selling car are different businesses. The ones blaming Ghosn for his love of mundane circus cannot understand he was selling cars during this time by building and maintaining network with highly influential people.

3 ( +3 / -0 )

Who had caused all the problems at Nissan ???.saikawa & the likes of him. Surely, these people was not thinking of Nissan, they were working too hard to save their own necks.What results do anyone have to expect ???. Real sales is hard work , saikawa is not that person. He is good for giving excuses and making people unhappy to meets his own needs. Back-stabbing and causing bad feelings is saikawa. Very happy that finally ,everyone can see him & his gang. No excuses needed this time.

2 ( +2 / -0 )

The question here is one of cause and effect. Ghosn was initially arrested on 19 November of last year. For the fiscal year ending in March 2019, Nissan's profits were down 57.9% from the previous fiscal year (from 746.9 billion yen to 319.1 billion yen).

just look at the shikihou for nissan and you will be able to get a clearer picture as to whether this circus is what drove the performance down.

looking at the past year and a little bit, we can see that it was already on a downward trend, but since the news of ghosn's arrest, the profits dropped, as mentioned, around 60%. however, profits also dropped by about 50% in late 2017 before remaining relatively stable throughout the rest of the year.

i think it's safe to say that nissan was experiencing some difficulties but this obvious coup has trashed the reputation of the company.

0 ( +0 / -0 )

Had they been smarter - they'd have asked him to prepare to be replaced and choose a successor. Now there's no clear future for the firm, and that's why the Stock Price has tanked. Back to the old ways it seems.

As some folks say here... "Nothing to see here, move on, move on...."

I feel sorry for Ghosn in some ways, not that he was a wealthy money grabbing vulture, but in the way he has been treated, no one deserves that, it somewhat makes me distrustful of the Law here, and of those who support it. Looks like they're all bent, and on the take in one way or another.

As an aside, Saikawa san also happens to look like one of those stereotypical Yakuza bosses. I guess it's now debatable which is more trustworthy - the Yakuza or NIssan ?

0 ( +0 / -0 )

Saikawa needs to go now.

0 ( +0 / -0 )

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