Japanese automaker Nissan has slashed its full-year regarding sales and growth as it is currently struggling with weak demand in its local market as well as global markets including the United States and Europe. The brand image of the company has been hit as the former CEO Carlos Ghosn was arrested in 2018 for false accounting.
Nissan reduced its profit forecast for the next financial year from 110 billion yen ($ 1 billion) as compared to its previous estimate of 170 billion yen. Total sales for the year have also been downgraded from 11.3 trillion yen to 10.6 trillion yen.
Nissan blamed the down gradation of its net profit and sales number for the increasing global tariffs across many countries in Europe, Asia and the US and poor performance on its earnings this year till all the last three quarters. It also said that the global demands for automobiles have decreased.
Incoming Chief Financial Officer Stephen Ma said that the sales in China has been increasing but in other countries like the US, Europe and Japan the sales of its cars have dwindled rapidly which resulted in poor market share and profits. The global giant in the automobile industry has had its net profits reduced by an astonishing figure of 73.5 per cent to 65.4 billion yen its worst half-yearly results since the financial crisis since the last decade.
The company is also fighting to stay afloat amongst the global competition said Satoru Takada an analyst of TIW, a research and consulting firm of the automobile industry.
It was Nissan’s first announcement of its earnings since the appointment of Makoto Uchida as the new chief executive after the Ghosn scandal. Hiroto Saikawa the former CEO also resigned from the company after investigation revealed that he had also received excess pay by manipulating the share price bonus.