Japanese auto major Nissan orders drastic spending cuts

WION Web Team New Delhi, Delhi, India Dec 30, 2019, 06.46 PM(IST)

A Nissan logo is seen at a car dealership in Ciudad Juarez, Mexico Photograph:( Reuters )

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The penny-pinching drive is in place for the rest of the financial year until end-March and will most likely continue into the coming business year.

Focused on profitability, the Japanese auto major Nissan has told its managers to slash non-essential spending as the automaker grapples with slumping car sales and tumbling profits.

The penny-pinching drive is in place for the rest of the financial year until end-March and will most likely continue into the coming business year.

According to reports, managers have been told to put the kibosh on unnecessary travel, sales incentives and promotional events to “conserve every yen."

Meetings that three or four people would once have travelled to attend in person, might now only have one Nissan representative.

The extensive spending cuts come in tandem with Nissan’s decision this month to order a two-day furlough for US Employees January  2-3. There is also an effective travel ban for staff in the United States, where sales have been particularly hard hit.