Nissan Motors Essay Example for Free

Nissan Motors Essay Dramatic loss in 2008 was wake up call for Nissan Motors Head Office, and the CEO of the company has conducted a meeting with fellow managements and shareholders to discuss the recovery plan for the company. As a result, he came up with Five year recovery plan detailed below. 1. Categorise by geographically- they categorised their market into three regions: Americas, Asians, AMIE which includes Africa, Middle East, India and Europe includes Russia. Each regions manufactured car will be sold in the nearby countries, saving transport cost. 2. Change in targeted customers- theres been sale increase in China and India, Nissan focused on selling more cars to those areas instead of the main customers such as USA, by doing that theyre making cars that meets the certain countries, for example in Japan, people buy car to get from A to B, whereas in Europe, people tend to go for money saving cars (eco-friendly/efficient 3. Reducing overall wage bill- means Nissan stopped hiring new staff, cut overtime, and introduced work sharing. Also, they made redundant of 20,000 workers in high cost countries including 1,500 in the UK. In Asia, they temporarily reduced salaries of cooperate officers by 25%, general managers by 20%, and other staff around 15% and eliminated bonuses and compensations. 4. Scrap scheme- In 2009, 10y+ cars can be exchanged for à ¯Ã‚ ¿Ã‚ ½2000 towards their new car. It encouraged people to buy new car to help car manufactures to grow, bring more customers and replaced old cars with new ones. Nissans Scrap Scheme They extended the scheme for drivers exchanging 8-10 year old car to buy any British build range that includes any new Nissan Micra, Nissan Note, Nissan Qashqai. That means some people managed to buy British built Nissan Micra for as little as à ¯Ã‚ ¿Ã‚ ½5,995. CONCLUSIONS From the table above, it is clear that it has been a wake up call for the company. They recognised it quickly and came up with a solution that has worked for them perfectly. According to BBC website, they published that Nissan Motors recovered fully in three years instead of five, which is great news, however they cannot sit back and relax as the global economy is not yet fully recovered and there is a chance that foreign currency might fall and rise anytime again. Press are saying that they recovered, but according to the speech of the CEO of Nissan Motors, hes claiming that they are still in their recovery mode and continuing to watch their expenses and preparing for any event that might come up in the future. BIBLIOGRAPHY www.bbc.co.uk