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Nissan Turning Around Its Financial Losses
12:52 a.m. EDT, October 21, 2009

In an article by Lindsay Chappell for Automotive News, a Nissan executive said the company's special task force on financial losses will be disbanded soon with its mission fully accomplished.

Colin Dodge, a Nissan executive vice president, said, We're not losing money anymore. We can't stay in recovery mode forever. [Nissan CEO Carlos] . . . Ghosn told me to use my best judgment about when to stop, and I think that might be pretty soon.

Dodge was charged with the mission of making global changes to halt the company's growing losses, which totaled $2.4 billion for the fiscal year ending on March 30, 2009.

Consequently, Dodge and his task force halted programs to develop new vehicles, declined to participate in major car shows, slowed the rate of new investments, worked on resourcing vehicle components, and relocated production operations among their many cost-saving cuts.

Dodge told Automotive News that the rate of financial loss was a powerful motivator for corporate change. When you're scared, you can do things you don't normally do, he said.

We got quicker in making changes, Dodge continued. The industry has made hard work out of decisions like this. It doesn't have to be so studied. You'd be surprised how quickly you can move a vehicle when you're losing money.

Although Dodge could not disclose Nissan's current financial numbers before the company's regularly scheduled legal reporting, the interview suggested those results will show significant improvement.


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