Transportation
Nissan Global Production Cuts Imperil CEO’s Recovery Plan
- Automaker has reduced output in China, Mexico in recent weeks
- Analysts see tough competition in China from local rivals
The production line at the Nissan Motor Co. factory in Sunderland, UK.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
Four months into a three-year plan meant to reinvigorate Nissan Motor Co., Chief Executive Officer Makoto Uchida is already struggling.
On Thursday, Nissan slashed its operating-profit outlook to ¥500 billion ($3.3 billion) for the year through March 2025, down from its prior forecast of ¥600 billion — far more than analysts had expected — due to weak sales in Japan and the US. The cut triggered two days of declines in the company’s shares with the stock falling as much as 11.2% over Thursday and Friday, on track for the biggest two-day fall since February.