AutoBeta(AutoBeta.net)06/16 Report--

According to foreign media reports, Nissan will stop developing new car models in Japan. In addition to Skyline, the development of high-end cars "Fengya" and "Sima" will also stop. Xuanyi stopped production as early as the end of 2020. In the past, Nissan sold most of its new cars, but in recent years, as demand has fallen. Nissan also plans to focus on SUV and pure electric vehicles (EV), and may withdraw from the domestic car business. In this regard, Nissan said in an interview with the media, "do not comment on the development plan."

The NISSAN SKYLINE (skyline) is an intermediate car supplied by Nissan in the North American market and the predecessor of the Infiniti G series. After the eleventh generation SKYLINE came off the line in 2001, the whole department changed its name to Infiniti G sales (still known as SKYLINE in North America). China's Infiniti G is the standard-changing product of Nissan's SKYLINE. In the 1970s, 660000 cars were sold in Japan in four years. But according to relevant data, the four cars that are about to be discontinued will sell 5800 cars in 2020, accounting for 1 per cent of new car sales. In this way, Nissan's decision to stop developing the sedan is not surprising.

According to Nissan's financial results for fiscal 2019, Nissan lost 44.5 billion yuan. It is worth mentioning that this is Nissan's first loss in 11 years and its biggest loss in 20 years. Affected by the downturn in the global car market and the impact of the COVID-19 epidemic, Nissan ushered in a huge loss in 2020. According to Nissan's financial data for the first three quarters of fiscal 2020, Nissan posted a net income of 5.32 trillion yen and a net loss of 367.7 billion yen (22.5 billion yuan) in the first three quarters of fiscal year.

In view of the poor market performance, the emergence of the COVID-19 epidemic in 2020 also forced Nissan to make strategic adjustments. According to foreign media reports earlier, Nissan will focus on China, the United States and Japan, gradually withdraw from other markets, including Europe. No matter what causes Nissan's profits to decline year after year, in addition to being affected by the epidemic last year, the strategic adjustment of the entire alliance also affects Nissan's future. Makoto Uchida, Nissan's chief executive, has said Nissan will also control overall financial operations by reducing costs by reducing factory capacity and closing factories.

According to relevant data, Nissan's free cash flow is minus 815.7 billion yen after 2019 to keep its factories running. The Bank of Japan for International Cooperation (JBIC) provided $2 billion (13.1 billion yuan) in credit to Nissan to help Nissan boost its performance in the United States. However, this is not the first time Nissan has borrowed money. In the first half of 2019, Nissan received $6.65 billion in loans from major borrowing methods in response to the epidemic crisis, 1/3 of which was guaranteed by the Japanese government. In Nissan's previously announced four-year plan to reduce its core market to Japan, North America and China, the global lineup will also be reduced from 69 to 55. Hope to save its declining performance and reduce losses and fixed cost spillover cash flow.

Since the arrest of Carlos Ghosn, Nissan's sales have also begun to decline, profits have plummeted, and the related share price has fallen from a high of 940 / share to 410 / share, according to a shareholder of Nissan. Two consecutive years of losses are due to fragmented management, indecision and lack of morale in the market competition.

In China's domestic market, Nissan Xuanyi models have been popular in domestic sales. According to relevant data, Nissan Xuanyi ranked first in May car sales, selling 38373 cars. In terms of specific models, Nissan Xuanyi series, seventh-generation Teana ALTIMA, SUV series models, as well as Qichen D60, Qichen T60 and recently listed Qichen Star all contributed to the growth of passenger car industry sector sales this month. Among them, Nissan's seventh generation Teana ALTIMA sold 9823 units, up 64.8% from the same period last year, and the Xuanyi series sold 45703 units, up 31.9% from the same period last year.

Nissan China released sales figures for May 2021. According to statistics, Nissan's cumulative sales in China, including passenger vehicles and light commercial vehicles, reached 591745 units from January to May, an increase of 28.8 percent over the same period last year. From January to May in 2021, the passenger car sector of Dongfeng Motor Co., Ltd. sold 479357 units, an increase of 28.8% over the same period last year. Sales of light commercial vehicles in the business sector were 107466, an increase of 38.5% over the same period last year.

Judging from the relevant data, the Chinese market is clearly its core, and Nissan has paid more attention to the Chinese market in order to recover. However, relying solely on Chinese market profit output is far from solving its own predicament. For Nissan, whether adjusting the business route can change the status quo remains to be verified by the market.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat