Nissan set for first loss since 2008 financial crisis
Nissan is on course to post its first annual loss since the 2008 financial crisis, the Japanese auto giant warned today.
Car sales have collapsed around the world as the coronavirus pandemic has drained demand, with carmakers braced for significant losses.
In a statement, Nissan said it was forecasting a loss of 45bn yen (£338m), a hefty swing from previous estimates of 85bn yen in profit.
The last loss the firm posted came back in 2008, when it fell 137bn yen into the red.
The carmaker also said that annual vehicle sales had fallen 43 per cent since March last year, leading to total sales of 4.8m cars, its worst result since 2011.
Nissan has delayed releasing its annual results until the end of May, it confirmed in a statement:
“The company’s performance has continued to decline, primarily impacted by the Covid-19 pandemic.
“Nissan anticipates additional time to finalise the results and is currently reviewing the precise financial impact”.
The coronavirus crisis has accelerated a pre-existing fall in Nissan’s sales and profits, with the result that the firm has had to row back an ambitious expansion plan from disgraced former executive Carlos Ghosn.
As a result of the pandemic, the company is considering a downsizing plan which will shrink the firm’s annual sales target by 1m vehicles, Reuters reported.
Nissan is expected to provide an update on its partnership with French giant Renault, which has been under pressure, during the next month.
Renault recently received €5bn in loans from the French government to help it through the crisis.