Several of the world's largest car manufacturers are being forced to slash jobs, close factories and slash annual targets in response to slumping interest.
Japanese giant Nissan unveiled an aim to reduce fixed costs by 300 billion yen (£1.5billion) and variable costs by 100 billion yen (£503million) in urgent measures.
As part of this, Nissan announced that it would be cutting its global production capacity by 20 per cent and reducing its global workforce, removing 9,000 jobs in the process.
As part of the cost-cutting measures, Makota Uchida, President and CEO of Nissan, said he would voluntarily forfeit 50 per cent of his monthly compensation.
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Nissan's Sunderland factory recently received a massive £2billion investment
PAStarting in November 2024, other executive committee members will also voluntarily take a pay reduction accordingly, alongside Uchida.
Commenting on the cost-cutting measures, Uchida said: "These turnaround measures do not imply that the company is shrinking.
"Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment.
"We aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth. As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans."
Uchida noted that the brand may not have the hybrid and plug-in hybrid range that is required to make a dent in the American market.
To cut vehicle production capacity, Nissan will look to change the line speed and shift patterns, with the aim of increasing the efficiency of its personnel.
According to Reuters, Nissan will also sell up to 10 per cent of its stake in Mitsubishi Motors to raise up to 68.6 billion yen (£345.2million).
Other brands have also struggled to make profits in recent history. Major manufacturer Volkswagen is also looking at closing three of its larger plants in Germany and cutting pay by 10 per cent.
Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, said the management of the company has a "clear intention" to cut thousands of jobs across the company.
She added that it was not "sabre-rattling" from VW management, with strikes planned at its Osnabrück production factory in north-western Germany.
CEO Thomas Schäfer has been urged to "do his homework" by Germany's biggest union, IG Metall. In response, Schäfer clarified that the brand was "not earning enough money with our cars".
German car part manufacturer Schaeffler is also expected to slash thousands of jobs, while also downsizing at 10 locations in Germany and five other sites in Europe.
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Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, speaks to employeesREUTERSAs part of the cost-cutting measures, Schaeffler AG will cut 4,700 jobs to "secure the long-term increase in the company's competitiveness"
Dr Astrid Fontaine, Chief Human Resources Officer of Schaeffler AG, said: "We are working in close consultation with our employee representatives, and our shared understanding is that the measures will be implemented in a fair and socially equitable manner on the basis of the Future Accord.
"Moreover, we will continue to invest in upskilling and professional development, with a strong focus on our home locations in Germany."
