Changes at Nissan: Domestic output to be lowered, Ghosn to step away from US responsibilities

March 18, 2007
By Ken Worsley

In response to a slump in domestic car sales, Nissan announced on Thursday that it will cut back on production at two of its assembly plants in Japan for three months starting from April. Despite the cutback in production for the domestic market, a Nissan spokesperson said that production in Japan for the export market as well as overseas-based output would rise, resulting in a net increase in global production for the 2007-08 financial year.

A day later, on Friday, Nissan CEO Carlos Ghosn announced that he would be giving up his position as head of Nissan’s North American operations. According to the New York Times:

The move, which takes effect on April 1, comes a month after Nissan warned that it expected to post a lower profit for the 2006 fiscal year, the first drop since Mr. Ghosn became chief executive in 2001…in recent months, Mr. Ghosn has taken a far lower profile, starting in October when General Motors rebuffed his attempt to form a broad alliance. He did not attend this month’s motor show in Geneva and did not plan to be at next month’s auto show in New York, where he has been the dominant personality.

Nissan announced that Hiroto Saikawa, the vice president for European operations, would take over Mr. Ghosn’s duties for North America.

Filed Under Automotive, Business