Nissan revises down its earnings forecast with bigger losses

TOKYO AP Nissan expects to rack up a loss totaling billion yen billion to billion yen billion for the fiscal year through March because of declining sales and the losing value of its assets the embattled Japanese automaker commented Thursday Nissan Motor Corp was already expecting red ink but the projected loss for the year was previously lower at billion yen million It reported the cost of impairments which refer to the lost value of assets exceeded billion yen billion and came after a review of production assets in North America Latin America Europe and Japan Annual sales have also declined with an expected million vehicles fewer than the million vehicles projected in February Nissan which makes the Altima mid-size sedan and Infiniti luxury models reports earnings results May The company based in the port city of Yokohama has been slashing production at its U S plants and offering buyouts to factory workers there Selected analysts believe Nissan s lineup is not appealing enough causing sales to shrink in major markets like the U S and China Despite being a pioneer in EVs with the Leaf which went on sale in Nissan has fallen behind the competition in EVs as well as hybrids to powerful rivals like Tesla in the U S and Byd of China Nissan stressed its solid cash position It expects to end the fiscal year with net cash of nearly trillion yen billion as well as trillion yen billion in liquidity Despite these challenges we have crucial financial support a strong product pipeline and the determination to turnaround Nissan in the coming period Chief Executive Ivan Espinosa commented in a report Espinosa who replaced Makoto Uchida as head of Nissan on April has vowed to make the company nimbler Earlier this year Nissan ended the talks it was holding with Japanese rival Honda Motor Co s ince last year to integrate their business and set up a joint holding company The automakers will continue to work together on electric vehicles and smart cars including autonomous driving Yuri Kageyama is on Threads https www threads net yurikageyama Source