Nissan cuts profit target by 66%

nissan_logo Unlike the domestic automakers, who are largely still in denial, Nissan is fully aware and honest about the current economic conditions.  To that end, Nissan reduced its profit forecast for the fiscal year ( ending March 21, 2009 ) by a massive 66%.  Their new target is $2.62 billion dollars for the fiscal year.

Note – Nissan is still projected to make a few billion, as opposed to the domestics, who are bleeding cash.  In addition to cutting the profit forecast, Nissan is also cutting production, and jobs.  They will build 200,000 less cars for the year, and cut 3,500 jobs.  2500 will come from the US – as part of a voluntary buyout program, while the remaining 1,000 jobs will be cut in Japan. 

To cut profit forecasts by such a huge percentage is a staggering setback – there’s no doubt about that.  But looking at things in a somewhat positive light, we have to remember – Nissan is still profitable.  In the wake of an terrible economic situation in the US, and very large incentives across the board, Nissan is still profitable.  That’s worth noting, at least.  Perhaps GM and Ford can pay attention and learn something.

Published on November 3, 2008 in Nissan

Previous post:

Next post: