CEO Uchida Vows to Turn Around Nissan

Economy

Tokyo, June 29 (Jiji Press)--Nissan Motor Co. <7201> chief Makoto Uchida promised shareholders on Monday that the company will turn itself around by breaking away early from former Chairman Carlos Ghosn's expansionary policy.

"Nissan will implement its turnaround plan with an unwavering resolve," Uchida, president and chief executive officer of the Japanese automaker, said at a meeting of shareholders at its headquarters in Yokohama, Kanagawa Prefecture, south of Tokyo.

He apologized for the company's poor earnings results that caused it to skip year-end dividends for the year ended in March.

In the year, Nissan suffered a group net loss of 671.2 billion yen due chiefly to structural reform costs, the worst performance in 20 years.

The company has excessive production capacity after Ghosn increased investment in emerging economies. It plans to reduce its global capacity by some 20 pct to 5.4 million units by the year ending in March 2024 through measures such as the closure of plants in Spain and Indonesia.

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Jiji Press