Monday, February 9, 2009

No More Payday Loans for 20,000 Nissan Employees

Workers may need payday loans for job search

Carlos Ghosn

Carlos Ghosn

About 20,000 workers currently employed by Nissan likely won’t be able to get payday loans much longer. That’s because soon payday will be replaced with unemployment checks.

Nissan, Japan’s third-largest auto maker, is facing its first loss in nine years. Company head Carlos Ghosn says he will take “emergency measures,” including suspending the company’s business plan, slashing capital expenditures by 21 percent and cutting about 20,000 employees.

Negative Numbers for Nissan

For the fiscal year that ends in March, Nissan projects it will incur a net loss of $2.6 billion. Last fall the company was expecting a $1.8 billion profit. However, sales have fallen about 23 percent.

Ghosn brought Nissan back from the brink of collapse in the early ’90s. Still, Ghosn says “This is like no recession I’ve known.”

“The global auto industry is in turmoil, and Nissan is no exception. In every planning scenario, our worst assumptions on the state of the economy have been met or exceeded,” Ghosn said.

Ouch. Too bad payday loans can’t help Nissan.

General shakeup

Robert Lutz

Robert Lutz ... click here to read the rest of the article titled "No More Payday Loans for 20,000 Nissan Employees"

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