Nissan Motor Co aims to get through the industry downturn by cutting costs at the same pace as a fall in revenues, a top executive at Japans third-biggest automaker said.
Executive Vice President Carlos Tavares, who was assigned last month to head the Americas region - traditionally Nissans biggest source of profits - said that until demand returned to normal levels, the main task would be to slash costs through work-sharing schemes, inventory control and other measures.
"We would like to see the bottom of the US market but so far its not visible yet," Tavares told Reuters in an interview at the Geneva Motor Show. "Once we see three to four months of stabilisation we could say we have hit bottom. But until then costs will have to be reduced at the same pace as revenue," he said. Nissan, 44 percent owned by Renault SA, has forecast its first net annual loss in nine years in the business year to March 31, hit by a sales slide, tightening credit and a stronger yen.
Like its rivals, Nissan has slashed production in the past few months to work down a pile of unsold vehicles in dealer lots, and Tavares said the carmaker was on track to reach a healthy level of inventory by the end of this month.
While acknowledging that its US operations needed fixing, Tavares said the economic crisis presented a valuable opportunity to become leaner and more efficient, partly by pursuing chances to share parts sourcing and back-office functions with other operations in the region, such as Mexico and Brazil.
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