Nissan has revised its earnings forecast downward, now expecting a loss of between 700 billion yen ($4.9 billion) and 750 billion yen ($5.3 billion) for the fiscal year ending in March. The Japanese automaker cited declining sales and the devaluation of its assets as major contributing factors.
Although Nissan had already anticipated a loss, the revised figure is significantly higher than the previously projected 80 billion yen ($561 million).
The company noted that impairments — or the lost value of assets — have exceeded 500 billion yen ($3.5 billion), following a review of its production assets across North America, Latin America, Europe, and Japan.
Annual sales are also expected to fall short of earlier estimates, with Nissan forecasting 3.35 million vehicles sold, down from the 3.4 million projected in February.
Nissan, known for models like the Altima mid-size sedan and Infiniti luxury vehicles, will report its earnings results on May 13.
The company, headquartered in Yokohama, has been reducing production at its U.S. plants and offering buyouts to factory workers.
Some analysts attribute the sales decline to Nissan’s lineup, which they believe lacks appeal in major markets such as the U.S. and China. Despite being an early leader in electric vehicles with the Leaf, which debuted in 2010, Nissan has struggled to keep up with competitors like Tesla in the U.S. and China’s BYD in both the electric and hybrid vehicle sectors.
Nissan emphasized its strong financial position, forecasting net cash of nearly 1.5 trillion yen ($10.5 billion) and liquidity of 3.4 trillion yen ($24 billion) by the end of fiscal year 2024.
“Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period,” Chief Executive Ivan Espinosa said in a statement.
