Nissan cuts profit forecast by 66%, will cut workforce
The entire auto industry is hurting right now, and financial news from Nissan today is the latest evidence to support that overused statement. Nissan announced that it's shifting profit forecast for the fiscal year ending March 31, 2009 down by 65.9% (!) to $2.62 billion. To keep inventory in line with reduced demand, Nissan is also cutting its annual production forecast by 200,000 units and will shed 3,500 jobs. The U.S. job losses will come from a previously announced voluntary buyout program and 1,000 jobs will be shed in Japan where layoffs are much less frequent. The automaker's new global sales goal for the year is 3.77 million units, which is down from the latest estimates of 3.9 million cars and trucks and about even with last year's sales. Nissan is far from alone in its current struggle, as Honda, Toyota, Mitsubishi and Mazda are also struggling to keep sales afloat, with most of their troubles centered on the ailing North American market. [Source: Automotive News, sub. req'd]
Get a WordPress.com Blog
_opt_thumbnail.jpg)
_thumbnail.jpg "2011 Audi A8: Live from Miami")
Reader Comments (Page 1 of 1)
aii 6:12PM (10/31/2008)
Wow Carlos Ghosn is a magician!
Seriously, when are you people going to get off his nuts. He is a decent businessman, that is about all.
Reply
Don 10:13PM (11/01/2008)
I'm sorry, but what have YOU done in your life? Ghosn only saved Nissan from certain death. You can dislike him all you like.
aii 1:04PM (1/15/2009)
Please working on your reading comprehension. There is no hatred here, only a request to get off someone's nuts.
phoenix 6:32PM (10/31/2008)
Gee, maybe if they convert their entire line to build nothing but the "Godzilla" GT-R, they can sell every one of 'em for $80k, they'll stand to make.... wow, a whole lotta' money!
Seriously, everyone's in the toilet right now. Nissan can just be happy they're run by Mr. Ghosn-in-sixty-minutes, rather than Bob "I can wreck ANY company" Nardelli.
Reply
tankd0g 10:36PM (10/31/2008)
Unless of course they are losing money on each one, in which case, GM business model !
Don 10:14PM (11/01/2008)
Or Maximum Bob Lutz, Carnival Huckster Extraordinaire!
ambientFLIER 6:33PM (10/31/2008)
Hopefully this will result in a very nice discount on a 350Z this spring for me. Hell, they are already selling for a good amount off all over.
Reply
SeattleJeremy 6:54PM (10/31/2008)
Ouch.
Reply
MachinaDC5 7:07PM (10/31/2008)
This won't please investors...
Reply
ls1vette 10:27PM (10/31/2008)
GT-Ricer shows it is a faker, Nissan con artist
read this, good reading, expected end results,
LAST Place. .
http://www.motortrend.com/roadtests/coupes/112_0810_2009_corvette_zr1_vs_porsche_gt2_vs_ferrari_599_vs_nissan_gtr/index.html
Corvettes Rule . . .
Reply
Lorinc Del Motte 7:46AM (11/01/2008)
It's not just the American market that's giving the Japanese automakers a kicking: their home market is declining as well, what with an excellent public transit system and a far stronger interest in electronics rather than cars among the youth.
Reply
Josh L 10:42AM (11/01/2008)
Hopefully they start with terminating all of the poor English-speaking "executive relations" customer support reps in Nashville.
Use... less...
Reply
whofan 1:00PM (11/01/2008)
Yea but notice Nissan expects a 66% PROFIT cut.
Still a profit wow our domestic automakers need to find a way to make a profit.
Reply
Tony 1:51PM (11/01/2008)
You are 100% right. No one seems to notice this fact, the line reads:
"Nissan announced that it's shifting profit forecast for the fiscal year ending March 31, 2009 down by 65.9% (!) to $2.62 billion. "
So in other words, Nissan is expecting to make a PROFIT of $2.62 billion instead of $4.3 billion give or take that was originally forecast. Meanwhile, the big three are scrambling to find a way to make even a $1 PROFIT!