Nissan, Renault COVID-19 results are pathetic, says ex-chairman Ghosn

The bridges that Carlos Ghosn set on fire continue to be engulfed in a spectacular blaze. Following his widely-publicized fall from grace – arrested, detained, and ultimately escaping from Japan, the former boss for Nissan and Renault evidently has no love lost for his former companies.   

Carlos Ghosn isn't running out of choice words for Nissan and Renault anytime soon

Share prices for both companies experienced a 55- and 70-percent plunge, respectively for the period of November 2018 to June 2020, largely due to COVID-19.

In an interview with French newspaper Le Parisien, Ghosn wasted no time in thumbing his nose at the two automakers, who have been allied in a long-standing partnership since 1999.

“There is a market confidence problem with the alliance,” he said. “Personally, I find the results of Nissan and Renault pathetic. The two companies are looking inwards. There is no longer any real mix of management between Renault and Nissan, but a distrustful distance.”

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Renault has announced worldwide job cuts due to weak demand 

Ghosn compared the performance of the two brands to that of General Motors and Toyota Motor Corporation, which have seen a much more modest 12- and 15-percent declines, respectively.

“All these manufacturers are facing the same COVID crisis, but Renault and Nissan are being punished more than others,” he opined.

Nissan will be halting production at three of its facilities in Japan 

Renault has recently announced that it will be implementing job cuts worldwide, part of a €2-billion restructuring plan as demand for new cars was decimated by COVID-19.

The company is also cutting down on the number of subcontractors it engages in areas such as engineering, which will reduce the number of components it uses. Expansion plans for Romania and Morocco have taken a back seat, and global manufacturing of gearboxes will be scaled down.

Worldwide production capacity will also be reduced from the present 4 million to 3.3 million units in 2024, with a shift in focus to small vans or electric models.

Meanwhile, reports say that Nissan is planning to cut global vehicle production by 30 percent, also citing the pandemic as the reason for stalling the brand’s turnaround efforts due to falling demand.

Some 2.6 million cars will roll off assembly lines between April and December, down from 3.7 million units during the same period last year. Nissan says it will cut production at its facilities in Oppama, Tochigi, and Kyushu facilities, following similar production suspensions in May and June.

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