Nissan’s awful earnings deliver a gift to Renault

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Nissan’s awful earnings deliver a gift to Renault. Boss Hiroto Saikawa has previously underestimated how bad things are: that weakens his hand in resisting closer ties with the Japanese carmaker's French partner.

Nissan reported on July 25 that earnings fell to 6.4 billion yen in the three months ending June 30, down around 95% from the same period the previous year. The Japanese carmaker’s operating margin fell from 4% to 0.1%.

The company said it would expand job cuts to over 12,500 people to help turn around the business, mostly at overseas factories with low utilisation rates. Renault owns 43% of the Japanese automaker, which in turn holds a 15%, non-voting stake in its partner. Chief Executive Hiroto Saikawa, who has sought more equal footing with Renault, last month said Nissan would postpone discussions on the alliance's future to prioritise performance.

 

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Who said first how bad things were at Nissan? Don't scratch your head, it was CarlosGhosn

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