Japan’s automakers face tough times as weak demand persists – Gulf Today
- Date: 29-Jul-2020
- Source: Gulf Today
- Sector:Financial Markets
- Country:Gulf
Japan’s automakers face tough times as weak demand persists – Gulf Today
Japan's automakers face tough times as weak demand persists
4 hours ago
Display cars at a Nissan showroom in Yokohama, Japan, on Tuesday. Agence France-Presse
Nissan Motor forecast on Tuesday its biggest-ever annual operating loss and said it expects vehicle sales to tumble 16% as the coronavirus pandemic hampers the company's efforts to turn around its business.
Japan's No. 2 automaker forecast an operating loss of 470 billion yen ($4.5 billion), much larger than a Refinitiv consensus estimate of a 262.8 billion yen loss and its second straight year of losses.
Japan's Mitsubishi Motors faced doubts about a quick recovery after posting dismal quarterly sales in its key Southeast Asia market partly due to the coronavirus outbreak, sending its shares down 13% to a record low on Tuesday.
Nissan predicted revenue would plunge by a fifth to 7.8 trillion yen.
Years of aggressive expansion, particularly in emerging markets, has left Nissan with dismal margins, an ageing portfolio and a tarnished brand. Still reeling from the 2018 arrest and ouster of former CEO Carlos Ghosn, it unveiled a far-reaching restructuring plan in May that calls for a dramatic reduction in production lines and its vehicle model range.
In the first quarter, Nissan posted an operating loss of