Nissan slashes full-year results forecast, sees operating loss

Nissan slashes full-year results forecast, sees operating loss

Nissan Motor Co on Tuesday said it expected to post its first annual operating loss in 11 years as the Japanese automaker struggles to recover from plunging vehicle sales as the coronavirus pandemic has sapped demand for cars.

Francis Maguire reports.

Nissan expects to post its first annual operating loss in 11 years.

It comes as vehicle sales plunge during the pandemic.

Japan's number two carmaker said Tuesday (April 28) it expected an operating deficit of about $420 million.

A huge drop from February's forecast of around $800 million in profit.

It would mark Nissan's worst financial performance since the 2008 global financial crisis.

The carmaker also announced that global car sales fell 43% in March from a year ago - its worst sales performance since 2011.

Even before the outbreak, Nissan's sales and profits had slumped, and it was burning through cash.

The virus outbreak has put more pressure on Nissan to downsize - and the company's management is convinced the carmaker needs to be much smaller.

They've argued for a recovery plan that would likely cut 1 million cars from its annual sales target.