AutoBeta(AutoBeta.net)07/29 Report--

Nissan's business condition is very worrying, and it seems to be stuck in a state of endless losses. Nissan expects to lose the same amount in fiscal 2020 as in the previous fiscal year, after a huge loss of 671.2 billion yen (about 44.7 billion yuan) in fiscal 2019, with a loss of 285.5 billion yen (about 19 billion yuan) in the first quarter alone.

Kyodo News reported on July 28 that Nissan Motor Co.'s consolidated earnings report for the first quarter of fiscal year 2020 (April-June) showed a net loss of 285.5 billion yen (about 19 billion yuan), compared with a profit of 6.3 billion yen in the same period last fiscal year, the first time Nissan had lost money in the first quarter of its fiscal year in nearly 11 years.

At the same time, Nissan achieved operating revenue of 1.1741 trillion yen (about 78.2 billion yuan) in the first quarter of fiscal year 2020, down 50.5% year-on-year; global total sales fell 47.7% to 643,000 vehicles.

Based on the current environment, Nissan has made performance expectations for fiscal year 2020. Nissan said it expects a consolidated net profit loss of 670 billion yen (44.6 billion yuan) for fiscal year 2020 (April 2020-March 2021), almost the same as the previous fiscal year. This means that Nissan will suffer huge losses for two consecutive years.

Nissan President and CEO Makoto Uchida said that "it will be a very severe year", emphasizing that by reducing excess production equipment and strengthening profitability,"it will definitely return to the growth track."

Nissan decided to stop paying dividends this year for the first time in a decade after a huge loss of 671.2 billion yen (44.7 billion yuan) in fiscal year 2019, Nissan's worst report card in the last 20 years. Uchida also formally apologized to investors at his annual meeting on June 29.

In response to the huge loss performance problem, Nissan's current management layer believes that the capacity expansion route led by former chairman Gohn reduced investment in new car research and development, reduced Nissan brand competitiveness in the world, and finally led to huge losses.

Nissan Motor has begun a four-year business reform plan to turn around its business difficulties. Uchida told shareholders that if he failed to turn around Nissan and improve its profitability, he would keep his promise and resign as CEO.

Its own business problems, coupled with the expansion of the new coronavirus epidemic led to depressed sales, further led to Nissan's continued losses, Nissan's road to business restructuring is more difficult.

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