NISSAN TO CUT PRODUCTION CAPACITY BY 20%
Nissan is slashing production capacity by 20% and closing a plant in Spain as part of a sweeping overhaul announced after the Japanese carmaker revealed its first annual operating loss in more than a decade, Sherisse Pham wrote for CNN Business late on May 28, 2020.
The company posted an operating loss of 40.5 billion yen ($376 million) for its fiscal year ended in March, compared to an operating profit of 318 billion yen ($2.9 billion) for its previous fiscal year. It was the company's worst performance since 2009.
More pain could be on the way. Given the uncertainty surrounding the coronavirus pandemic, "it is difficult to reasonably forecast an outlook for fiscal year 2020 at this time," CEO Makoto Uchida said at an earnings presentation on Thursday.
The announcements come one day after Nissan, Renault and Mitsubishi said they would deepen their alliance. The companies will make fewer models, share production facilities and focus on the existing geographic and technological strengths of each carmaker as they try to slash costs and ride out the coronavirus pandemic.