Nissan predicts a net loss of 5.4 billion euros in 2020-2021

In great difficulty due to the pandemic, the Japanese car manufacturer Nissan announced on Tuesday July 28 to forecast a net loss of 670 billion yen over its 2020-2021 fiscal year, or 5.4 billion euros, similar to that suffered in 2019-2020.

In the first quarter of its new financial year (April-June), the group recorded a net loss of 285.6 billion yen (2.3 billion euros), against a small profit of 6.4 billion yen a year earlier (51.8 million euros).

Its quarterly sales fell 50.5% year-on-year, to 1,174.2 billion yen (9.5 billion euros), and the group expects them to decline 21% overall. for the year, to 7.8 trillion yen (63.2 billion euros). They have been affected “Significantly” by the Covid-19 pandemic, which has forced Nissan to suspend production in its factories around the world in recent months, the group said in a statement. Its factories have now restarted, but “Face reduced use of their capacities” due to the crisis, he added.

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20% reduction in production capacity by 2024

In volume, its sales over the past quarter fell 47.7% to 643,000 vehicles. They fell 33.7% in Japan and 49.5% in the United States.

In China, where Nissan publishes its results one quarter late, the group’s sales volume sank 39.9% in January-March, when the country was hit hard by the Covid-19. Nissan anticipates a 4% rebound over one year in volume sales in China over the April-June period.

For reasons of economy, Nissan said Tuesday that it will waive dividends for 2020-2021.

In an attempt to recover, the ally of French Renault and Japanese Mitsubishi Motors further stepped up its restructuring plan at the end of May, now planning to reduce its global production capacity by around 20% by 2024.

In particular, it has decided to close its sites in Barcelona, ​​Spain, and to focus its main efforts on Japan, China and North America, while relying elsewhere on its partners. The three members of the alliance have all abandoned the race for volumes and embarked on severe austerity cures to return to profitability as soon as possible.

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The World with AFP