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Nissan Motor Corp. was already expecting red ink, but the
projected loss for the year was previously lower at 80 billion
yen ($561 million).
It said the cost of impairments — which refer to the lost value
of assets — exceeded 500 billion yen ($3.5 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 3.35 million
vehicles, fewer than the 3.4 million vehicles projected in
February.
Nissan, which makes the Altima mid-size sedan and Infiniti
luxury models, reports earnings results May 13.
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.
Some 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 2010, 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 2024 with net cash of nearly 1.5 trillion yen ($10.5
billion), as well as 3.4 trillion yen ($24 billion) in
liquidity.
“Despite these challenges, we have significant financial
resources, a strong product pipeline and the determination to
turnaround Nissan in the coming period,” Chief Executive Ivan
Espinosa said in a statement.
Espinosa, who replaced Makoto Uchida as head of Nissan on April
1, 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.
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