Nissan is in Worst Financial Period, Expects Rebound in Q4
This year is Nissan’s unlucky year, if not the worst.
From the controversial escape of its former chief executive to stalling US sales. Adding to this is the employment of aggressive cost-cutting measures to keep the business afloat. None of the measures taken seem to be working for the car manufacturer.
Its incumbent CEO, Makoto Uchida, said that the company expects a healthy business recovery by next year. Earnings are expected to show a turnaround as early as January to March period.
However, total profitability may not be reached until the fiscal year ending March 31, 2022, although the recovery will transmit growth momentum across its business channels.
He added that they might trudge towards better yields as early as the end of this year in the Q4 period depending on how the number of daily cases of coronavirus infections may turn out.
For the second-quarter, Nissan Motors recorded nearly halved revenue as the pandemic restricted people from building and buying cars. This is further aggravated by the firm’s restructuring measures, resulting in a painful double whammy.
Future Prospects of Nissan Motors
The carmaker currently braces for the worst financial period. It expects the most significant operating manual loss ever recorded in the course of its run.
Nevertheless, all the bad news may be curbed if the new vehicles in the line-up for release will get a warm welcome in the market. Its new products will be essential players in the overall recovery plan.
Nissan will continue to be a budget-friendly brand, its chief executive reiterated.
Meanwhile, Toyota tumbles anew as its San Antonio-made pickup trucks recorded lukewarm sales for August.
The car manufacturer said that they have too few trucks on hand to meet the growing demand due to a sharp drop in production. Thus, driving potential sales away.
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