Nissan cuts profit forecast after 70 percent quarterly plunge

Cornelia Mascio
Novembre 14, 2019

Crisis-hit Japanese automaker Nissan Tuesday slashed its full-year forecast for both sales and profit as it struggles with weak demand in Japan, the U.S. and Europe, as well as fallout from the arrest of former boss Carlos Ghosn.

Complete-yr income at the moment are approximated at 10.6 trillion yen, down from a earlier forecast of 11.three trillion yen.

We are revisiting all our assumptions, and as you can see that is why we revised down our forecast for sales volume for the full year.

Although other automobile manufacturers such as Honda Motor Co and Mazda Motor Corp have also slashed sales and profit outlooks for the year, Nissan is struggling with the added burden of financial mismanagement under Ghosn.

"Unlike in the past, we are not chasing market share.we are primarily focused on sustainable growth", Vice President Stephen Ma, who will become chief financial officer in the management reshuffle on December 1, told a press conference. "This resulted in the overall decrease of our market share".

"Nissan is in a very severe situation at a time when competition in the global auto market is further intensifying", said Satoru Takada, auto analyst at TIW, a Tokyo-based research and consulting firm.

Nissan in the past few weeks has announced a revamp of its top ranks with younger executives, naming the head of its China business, 53-year-old Makoto Uchida, as its next chief executive, as it seeks to draw a line under Ghosn's legacy. He takes over from Hiroto Saikawa who stepped down in September over a pay scandal, who in turn succeeded Ghosn.

"Nissan's new administration is setting sail in a storm", Takada instructed AFP.

The automaker has cited a worldwide slowdown within the vehicle sector, however additionally it is struggling from a scarcity of innovation on its creation line and reputational destruction from the Ghosn scandal.

"Additional restructuring is possible in the wake of the layoff plan", Takada said.

As Nissan's dividend diminishes, Renault is among those losing the most because it owns 43 percent of its Japanese partner.

For the future, Nissan is putting into place a new leadership.

Ghosn, who developed the alliance, wished elevated integration with France's Renault, and claims his thrust for that prompted indignant Nissan executives to plot in the direction of him.

Ghosn, arrested in November 2018, is out on bail.

"The negative impact of the furore around Ghosn is gradually becoming visible", Takada said.

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