Nissan Reported $ 6.2 Billion Net Loss

Japanese automaker Nissan reported a 671 billion yen (about 6.2 billion dollars) net loss for the latest fiscal year and said it intends to close its Barcelona plant in Spain in addition to the one it is planning to shutter in Indonesia.

"The global Covid-19 pandemic substantially impacted Nissan's production, sales and other business activities in all regions. The impact is reflected in the financial results for fiscal year 2019," it said in a statement.

The company said overall market demand decreased amid the current global environment, which resulted in a slowdown in the global total industry volume.

In fiscal year 2019, the global total industry volume fell by 6.9 per cent to 85.73 million units. Nissan's sales dropped 10.6 per cent to 4.93 million units and market share maintained 5.8 per cent as per the previous forecast.

Nissan, which has been hit by the fallout from the arrest of former boss Carlos Ghosn, also unveiled a plan to turn the automaker around by eliminating about 300 billion yen in annual fixed costs, cutting capacity and reducing the number of car models.

"Our transformation plan aims to ensure steady growth instead of excessive sales expansion," said Chief Executive Officer Makoto Uchida.

"We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability. This coincides with the restoration of a culture defined by 'Nissan-ness' for a new era," he said in a statement.

By implementing the plan, Nissan aims to achieve a 5 per cent operating profit margin and a sustainable global market share of 6 per cent by the end of fiscal year 2023, including proportionate contributions from its 50 per cent equity joint venture in China.

"As part of the four-year plan, Nissan will take decisive action to transform its business by streamlining unprofitable operations and surplus facilities alongside structural reforms," it said.