Nissan revises down its earnings forecast with bigger losses

Nissan is anticipating a loss of 700 billion yen ($4.9 billion) to 750 billion yen ($5.3 billion) for the fiscal year ending in March due to reduced sales and the declining value of its assets, the struggling Japanese carmaker revealed on Thursday. The company had already anticipated losses, but the projected amount was previously lower at 80 billion yen ($561 million). The impairments cost, which represents the diminished value of assets, surpassed 500 billion yen ($3.5 billion) after a reassessment of production assets in North America, Latin America, Europe, and Japan. Nissan also faced a drop in annual sales, with an expected 3.35 million vehicles sold, fewer than the 3.4 million vehicles estimated in February. Nissan, known for models like the Altima mid-size sedan and Infiniti luxury vehicles, will release its earnings report on May 13. The automaker, headquartered in Yokohama, has been reducing production at its U.S. factories and offering buyouts to factory employees. Some analysts suggest that Nissan’s vehicle lineup lacks appeal, resulting in declining sales in key markets such as the U.S. and China. Although Nissan introduced the Leaf electric vehicle in 2010, it has fallen behind competitors like Tesla and Byd in the U.S. and China in the electric and hybrid vehicle market. Despite the challenges, Nissan emphasized its strong cash reserves, anticipating ending the fiscal year 2024 with nearly 1.5 trillion yen ($10.5 billion) in net cash and 3.4 trillion yen ($24 billion) in liquidity. Chief Executive Ivan Espinosa expressed confidence in the company’s ability to rebound in the near future, highlighting the solid financial resources and the determination to revitalize Nissan. Espinosa, who took over from Makoto Uchida as Nissan’s head on April 1, pledged to make the company more agile. Earlier this year, Nissan terminated discussions with Japanese counterpart Honda Motor Co. that had been ongoing since last year regarding business integration and the establishment of a joint holding company. The companies will continue to collaborate on electric vehicles and smart cars, including autonomous driving technologies.