Many automakers are acknowledging the fact that sales targets might not be met this year. With most of the world in lockdown, not many are willing to go out and buy a new car. The current pandemic has jolted the industry so much that automakers are revising their sales forecasts.
One of those manufacturers is Nissan and they said their consolidated earnings may differ by more than 30% from the previous financial forecast announced on February 13, 2020. Nissan says this largely due to (you guessed it) the impact of the COVID-19 pandemic. Not only that, but they are also looking at the possibility of booking a one-time loss.
Here are some figures. According to a statement from Nissan, they might report a consolidated operating profit that is JPY 120 billion to JPY 130 billion lower (approx. Php 56,730,229,200 to Php 61,457,748,300 at current exchange rates) and a net income that is JPY 150 billion Yen to JPY 160 billion (approx. Php 70,912,786,500 to Php 75,640,305,600 at current exchange rates) lower than the February 13 forecast.
Also, operating profits have been slimmer too. At the time of writing, the global crisis has cost the company JPY 90 billion in vehicle and parts sales, JPY 30 billion in their financing business, and another JPY 30 billion from the Alliance.
Nissan does have measures in place to stop the hemorrhaging of profits. For quite some time now, they have been working on their revival plan but, again, the COVID-19 has put a dent in that.
Simply put, timing hasn't been Nissan's friend since the whole Carlos Ghosn fiasco. The automaker does say that the changing of their forecast doesn't include the revival plan just yet. With that, Nissan could still turn the tide on what has been a rough year so far.