For nearly 18 months we have been keeping a close eye on the recession occurring globally in the auto industry, most recently highlighting both a collapse in Chinese sales for January 2020 and the continued impact that the coronavirus outbreak is having on an already decimated industry.
And as it goes during a recession, the hits just keep on coming. The latest “good news” came yesterday, when Nissan slashed its annual operating profit forecast by a stunning 43%, blaming a slump in vehicle sales, according to Reuters.
The drastic outlook shift comes after the company posted its first quarterly net loss in almost 10 years. It also sets Nissan apart from what has been (at least, for now) mostly upbeat guidance from Toyota and Honda.
Makoto Uchida, Nissan’s third CEO since September, said: “We are making progress, but sales volumes have been weak so we need to do more restructuring than initially planned.”
He said the company’s financial position would remain “tough” over the next year and that it would take time to repair profitability in the U.S. The company says it expects operating income of about $775 million, which falls way short of previous estimates that were closer to $1.2 billion USD.