Nissan is facing criticism for its hybrid strategy, with analysts highlighting its over-reliance on EVs. After huge job cuts and profit forecasts
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Nissan Motor shares fell 6 percent in Tokyo trading on Friday, a day after the Japanese automaker said it would cut 9,000 jobs and 20 percent of its manufacturing capacity as it struggles with sales in China and the United States. Is struggling.
The stock posted its biggest one-day price drop since August, ending the session at 385.2 yen, just above a four-year low.
Japan's third-largest automaker on Thursday slashed its full-year operating profit forecast by 70 percent and completely scrapped its net forecast due to restructuring, which it said would cost the company in the fiscal year through March. There will be a cut of 400 billion yen ($2.61 billion). Ending.
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Like many global automakers, Nissan is struggling in China where BYD and other domestic rivals are winning market share with affordable electric vehicles and petrol-electric hybrids equipped with advanced software.
Nissan has also been challenged in the US, where it has a shortage of hybrid vehicles because of the huge demand for that type of vehicle.
CEO Makoto Uchida said Thursday that Nissan did not expect the sudden popularity of hybrids in the US and that demand for modified versions of the core model was not as strong as expected.
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Nissan's restructuring is the latest chapter in a long-running effort to revive its business, which has never fully recovered after ousting former Chairman Carlos Ghosn in 2018 and cutting its partnership with Renault.
On Friday, Economy, Trade and Industry Minister Yoji Muto declined to comment when asked by reporters for his views on possible government support for Nissan.
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Tokai Tokyo Intelligence Laboratory analyst Seiji Sugiura placed much of the blame for Nissan's U.S. hybrid situation on management, saying it expected to sell primarily new EVs and conventionally powered models.
Sugiura said, “The company released its mid-term plan this spring, but in the end it made no sense. I think their understanding of the situation is completely wrong.”
Nissan's mid-term plan announced in March included 30 new models over the next three years, increasing global sales to 1 million vehicles, increasing operating profit margins to more than 6 percent by the end of fiscal 2027 and total shareholder returns of 30 percent. It became more. ,
($1 = 153.2000 yen)
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First publication date: 09 November 2024, 10:05 am IST