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Nissan is mired in financial difficulties under huge losses and has sharply shrunk its global business. Nissan officially apologized to investors for a huge loss of 671.2 billion yen (44.5 billion yuan) in fiscal year 2019 and said it would adjust its business route, according to CCTV financial news.

It was Nissan's worst report card in 20 years, and Nissan decided to stop paying dividends this year for the first time in a decade. At the same time, Nissan President Shigeru Utada publicly apologized to investors at the annual meeting held on the 29th.

In response to the performance problem of huge losses, Nissan's current management believes that the capacity expansion route led by former Chairman Ghosn has reduced investment in new car research and development, reduced the global competitiveness of Nissan brand, and eventually led to huge losses.

Nissan released its consolidated results for fiscal year 2019 (April 2019 to March 2020) on May 28, showing that its final net profit fell to a loss of 671.2 billion yen (44.5 billion yuan), compared with a profit of 319.1 billion yen in the previous fiscal year. The loss was huge, approaching the 1999 fiscal year in which former chairman Carlos Ghosn was determined to implement reforms (a loss of 684.3 billion yen).

In other figures, Nissan's sales in fiscal 2019 were 9.8788 trillion yen, down 14.6% from the previous fiscal year, while global sales fell 10.6% to 4.93 million vehicles.

In order to reverse the current predicament, Nissan began to adjust its business route and announced a four-year business reform plan. Specific implementation plans include a 20 per cent reduction in global capacity, reducing annual global production to 5.4 million vehicles from 7.2 million in the Ghosn era. Nissan will close its factory in Indonesia, negotiate to close its plant in Barcelona, Spain, and withdraw from sales in the South Korean market. The fixed fee in fiscal year 2020 is 300 billion yen lower than that in fiscal year 2018. Nissan's core business is concentrated in Japan, China and North America, launching 12 models in the next 18 months. In addition, Nissan also proposed to tilt the money towards new car development, especially to increase the research and development of electric vehicles and self-driving technology.

It was previously reported that Nissan also plans to cut more than 20000 jobs worldwide, which will be the largest layoff since Nissan's recovery plan in 1999, mainly in Europe and some countries with poor market performance.

By implementing the plan, Nissan aims to achieve a 5 per cent operating margin and 6 per cent global market share by the end of fiscal year 2023.

The management of internal friction is also considered to be one of the important causes of Nissan's operating crisis. After the financial scandal broke out by former chairman Carlos Ghosn, Nissan experienced a moment of turmoil and the former CEO Hiroshi Nishikawa was forced to step down. The 54-year-old Uchida took over as Nissan's CEO in December. Mr. Uchida told shareholders that if he failed to turn Nissan around and fail to improve Nissan's profitability, he would keep his promise and resign as Nissan's CEO.

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