Nissan plunges into financial abyss amid Trump tariffs and general malaise
Japanese car manufacturer Nissan is in dire straits and is issuing a rather dramatic profit warning. Or rather: a loss warning. The company expects to make a loss of 4.6 billion euros.
That is quite a significant adjustment compared to a few months ago, when Nissan expected to close the financial year (ending on March 31) with a loss of around 500 million euros.
Unrest, unrest, unrestNissan has been in turmoil for years. In 2018, then CEO Carlos Ghosn was arrested in Japan on suspicion of fraud. A year later, he miraculously escaped.
Then came the corona crisis and earlier this year a proposed merger with competitor Honda collapsed. The stock market value has fallen by around 40 percent in a year.
LeviesAnd now a mega loss is expected. Nissan is writing off its production locations in the United States and Europe and is losing billions on a reorganization. At the end of last year, the Japanese company announced that it would lay off no fewer than 9,000 people in order to become profitable again.
The import duties on cars that Donald Trump has announced are pushing the company even deeper into the malaise. 30 percent of Nissan's turnover comes from the US. A large part of the cars that the brand sells in the US come from Japan and Mexico and are therefore affected by the duties.
RTL Nieuws
