Nissan Motor to Unveil Restructuring Plan

Nissan Motor Co., an affiliate of French auto maker Renault, today will announce a revival plan that analysts say may include a factory closure and a 20% reduction of its work force. The plan, to be unveiled by Nissan Chief Operating Officer Carlos Ghosn, is an expansion of the No. 2 Japanese auto maker’s previous restructuring, announced in 1998. The earlier effort, which called for a $9.3-billion reduction of debt in three years by selling assets, cutting costs and trimming employees, didn’t go far enough or fast enough. In March, Nissan was forced to sell a controlling 37% stake in itself to Renault, ending 66 years of independence. Nissan has watched its worldwide sales fall by 800,000 vehicles during the last seven years. With the company headed toward its seventh group loss in eight years, analysts said Nissan must move faster to reinvent itself. Nissan’s goal is to get back into the black in the year ending March 31, 2001, and to repay some of its estimated $27.2 billion of consolidated debt. Analysts said Nissan must rebuild its brand image at home and in the U.S.--its biggest markets--by eliminating unpopular vehicles and designing a hit model along the lines of its popular 240Z sports coupe of the early 1970s. To be sure, there are signs of a turnaround. Nissan’s revenue in the U.S. has risen 6.8% so far this year on strong sales of new models such as the Xterra sport-utility vehicle. It also expects vehicle sales in Europe to rise 10% next year to a record.