The newly tapped executives to strengthen corporate governance at Nissan promised to turn the Japanese automaker's ailing business around but said Wednesday that extensive job cuts are coming, designed to drive a recovery.
Nissan's brand image has been battered by the financial wrongdoing scandal of former Chairman Carlos Ghosn, who is awaiting trial in Japan.
Motoo Nagai, a former banker and a new outside director overseeing audit, told reporters Wednesday the job cuts will be announced this week under a new scenario to drive growth.
FILE - In this Nov. 21, 2018, file photo, a security guard stands near the logo at Nissan Motor Co. Global Headquarters in Yokohama near Tokyo. The executives charged with strengthening governance at Nissan are saying extensive job cuts are coming, designed to drive a recovery at the Japanese automaker. (AP PhotoEugene Hoshiko, File)
Japanese media have reported Nissan Motor Co. will slash 10,000 jobs. Nagai did not give details.
"This is not a simple job reduction but designed for a big jump," he told reporters at the company's Yokohama headquarters.
Ghosn, who led Nissan for two decades, is awaiting trial on allegations of under-reporting future compensation and having Nissan shoulder his investment losses. He has repeatedly said he is innocent.
Nissan restructured its management in March, adding outside directors, after Ghosn was arrested in November. The directors' appointments to head various governance committees, to oversee compensation, nomination and audit, won shareholders' approval in June.
The directors have said that the concentration of power in Ghosn led to the wrongdoing and have acknowledged that governance checks at Nissan had lagged. But they stressed that their efforts had just begun.
"We need to set up a solid corporate governance structure but also make sure it is put it into practice," said Yasushi Kimura, chairman of the board, stressing that transparency and fairness were critical. Kimura previously served as a consultant at an oil company.
Other governance directors are Masakazu Toyoda, an academic and outside director overseeing executive nominations, and Keiko Ihara, a race-car driver and outside director overseeing compensation. Both were Nissan executives from last year but are newly appointed to the governance positions.
Toyoda said it was important to build a succession in management and strengthen Nissan's alliance with French automaker Renault SA and smaller Japanese automaker Mitsubishi Motors Corp.
Nissan's financial results have tumbled since the Ghosn scandal. The company, based in the port city of Yokohama, reports its fiscal first quarter earnings on Thursday.
The directors acknowledged that Nissan's U.S. operations suffered from a mistaken strategy that pursued maximizing sales volume, relying on incentives and fleet sales, or rentals.
The company's relationship with Renault also has been questioned in the absence of Ghosn, as he was sent by Renault to help turn around Nissan in the late 1990s and had worked to bring together the alliance.
Ghosn was released on bail in April after spending 130 days in detention. It's unclear when his trial will start as it is common in Japan for trial preparations to take many months.
Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama
DETROIT (AP) — The Oakland Athletics no longer have to wonder where they'll play the next few seasons. That won't make the long goodbye any easier.
The A's reacted to the announcement that this will be their last year in Oakland with a mixture of sadness and relief.
“At least as a player, you know where you’re headed,” outfielder Seth Brown said Friday before a game against the Tigers in Detroit. “There’s obviously a lot of moving parts, a lot of stuff we’re not privy to, so it’s just been kind of a waiting game on our end. Where are we going to go? Where are we going to be? So I think just having that knowledge -- at least we know where we’re going to be playing next year.”
Vivek Ranadivé, who owns the Triple-A Sacramento River Cats, and Oakland Athletics owner John Fisher announced Thursday that the A’s will temporarily relocate to West Sacramento's Sutter Health Park for at least three seasons. The A's are moving to Las Vegas after a new ballpark is constructed.
The River Cats, who are affiliated with the San Francisco Giants, will continue to play at the same facility.
Fisher was unable to reach an agreement with Oakland city officials on extending the lease at Oakland Coliseum, which expires at the end of this season. The A's have played in the city since 1968.
“There's direction now, which we've talked a lot about,” Oakland A's manager Mark Kotsay said. “We've got time to kind of reflect on what this really means from an organizational standpoint, the history that we've had in Oakland, with this being now the final season. There's a lot of emotion that goes behind this.”
It will not only cause some upheaval for the players and staff but also members of the organization that work behind the scenes.
“At the end of the day, we know where we're going to be for the next three seasons after the finish this year and that in itself gives a little bit of stability,” Kotsay said. “At the same time, in the present, it's challenging in certain ways to think about the finality of this organization in Oakland.”
Sacramento will be a much smaller environment to house a major league team. Ranadivé said the River Cats venue currently seats 16,000 when counting the stands, the lawn behind center field and standing room only.
First baseman Ryan Noda is concerned with the facilities. He's hopeful that significant upgrades will be made, much like the Toronto Blue Jays did at Buffalo's Triple-A facility. The Blue Jays played at Buffalo's Sahlen Field in 2020 in 2021 during the COVID-19 pandemic.
“New walls, new dugouts, new locker rooms — everything they needed to become a big league stadium,” said Noda, who played some games in Sacramento as a minor leaguer. “As long as we can do something like that, then it'll be all right. But it's definitely going to be different than playing in stadiums that hold 40,000 people.”
Kotsay is confident the upgrades will occur.
“I know it will be of major league baseball quality,” he said. “It's has to be of major league baseball quality. I know the Players Association will make sure that takes place, as they did in Buffalo.”
For the rest of this season, the A's will have to deal with small home crowds and disappointed fans.
“We’re sad for the fans, the diehard fans, who always come to our games, always support us, always support the boys wearing the jersey,” Noda said.
AP MLB: https://apnews.com/hub/mlb
Sacramento Kings owner Vivek Ranadive, center, shakes hands John Fisher, owner of the Oakland Athletics, before the start of a news conference where Fisher announced his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4 2024.The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
John Fisher, owner of the Oakland Athletics baseball team, announces that his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4, 2024. The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Sutter Health Park, home of the Triple A team Sacramento River Cats, is shown in West Sacramento, Calif., Thursday, April 4, 2024. The Oakland Athletics announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Oakland Athletics manager Mark Kotsay walks to the dugout after making a pitching change during the eighth inning of the team's baseball game against the Cleveland Guardians in Oakland, Calif., Sunday, March 31, 2024. (AP Photo/Jeff Chiu)
