12 Nov 2019
Posted in Automotive
Nissan’s latest results underline scale of recovery challenge ahead, says GlobalData
Following the release of Nissan’s financial results (12 November 2019), where the company has reported quarterly operating profits are down 70% on last year;
David Leggett, Automotive Editor at GlobalData, a leading data and analytics company, offers his view:
“The latest set of results from Nissan underlines the scale of the recovery challenge ahead for Nissan’s newly shaken-up management team. The company is clearly struggling to get back on track a year after the arrest of ex-chairman Carlos Ghosn on financial misconduct charges.
“The company is looking to conserve cash with a diminishing share dividend outlook and a major cost-cutting drive that will axe a tenth of its global workforce through 2023.
“However, the global recovery plan is also facing headwinds, including a stronger yen and slowing demand in key markets – especially North America and Japan.
“Nissan has cut its sales and profit forecast for the current fiscal year – something that will cause concern for investors and weakens the company’s position in its alliance with Renault and Mitsubishi.
“The new CEO Makoto Uchida has plenty to do to get Nissan back on track and re-set the alliance. Indeed, tensions with Renault may be heightened by a reduced profitability contribution from Nissan. It is a company desperately in need of renewal.”