Nissan Bucks The Odds, Returns To Profitability

Nissan reported a profit for the third quarter, managing to reverse earlier losses despite challenges that include shortages of computer chips and rising costs for materials, Yuri Kageyama reported for the Associated Press (AP).

Photo Insert: Ashwani Gupta, Chief Operating Officer, Nissan Motor Corporation

The 54.1 billion yen ($479 million) profit for the last quarter compared with a 44 billion yen loss racked up in the same period of 2020. Quarterly sales edged up 1% to 1.94 trillion yen ($17 billion), as Nissan Motor Co. vehicle sales rose in Japan and the rest of Asia while declining in North America and Europe.

Chief Operating Officer Ashwani Gupta began his presentation by apologizing to customers for disruptions to deliveries of products because of the crunch of the chip, which has affected all the major automakers including Toyota Motor Corp.

“Our customers are waiting,” said Gupta, adding that Nissan hoped to boost its market share. “The more we can produce, the more we can sell.”

Gupta added that Nissan’s performance was better than expected.

The company raised its profit forecast for the fiscal year ending in March to 180 billion yen ($1.6 billion) from an earlier 60 billion yen ($531 million).

Gupta said the upward revision in Nissan’s profit outlook was despite an expectation that sales for the year will total 3.8 million vehicles, down from an earlier estimate of 4.4 million vehicles.

The Japanese maker of the Leaf electric vehicle, Z sportscar, and Infiniti luxury models has been battling a tarnished brand image after the arrest three years ago of its then-Chairman Carlos Ghosn on charges of under-reporting his future compensation.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic