Nissan Motor, the Japanese automotive giant, has significantly revised its annual outlook downward following a dramatic decline in first-quarter profit. The company's performance was severely impacted by aggressive discounting strategies in the United States market, leading to financial results that fell far short of analyst expectations and triggered a sharp decline in Nissan's stock price.

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The unexpected poor performance has introduced a new set of concerns for investors, who must now grapple with uncertainties surrounding Nissan's prospects in the United States. This development adds to existing worries about the company's efforts to revitalize its position in another crucial market, China.

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For the April-June quarter, Nissan reported an operating profit of just 995 million yen (approximately USD&nbsp;6.5 million), a stark contrast to the 128.6 billion yen recorded in the same period last year. This figure represents a mere fraction of the 164.4 billion yen average estimate provided by analysts, as compiled by LSEG.

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Acknowledging the challenging quarter, Nissan's Chief Executive Makoto Uchida stated, "The first quarter was a very tough one for Nissan." However, he expressed confidence in the company's ability to recover, citing plans to address current challenges and introduce new models to the market.

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In response to these difficulties, Nissan has announced plans to optimize inventory levels in the United States and focus on improving sales quality. The company intends to strengthen its market position by launching new and refreshed models, including the Armada and Murano SUVs, in the latter half of the financial year.

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Following what has been described as its worst quarterly performance in over three years, Nissan has reduced its operating profit forecast for the current financial year by 17 per cent, bringing it down to 500 billion yen. 

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The company has lowered its retail sales forecast by approximately 50,000 vehicles to 3.65 million units, citing weaker-than-anticipated sales in both the United States and China.

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The significance of these two markets cannot be overstated for Nissan. The United States and China collectively accounted for half of the company's global sales in the previous financial year and 51 per cent&nbsp;in the first quarter of the current year. They are the only two markets where Nissan sold over 100,000 vehicles in the first quarter, with Japan, the company's home market, ranking as its third-largest by sales volume.

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While overall sales volume remained stable year-on-year at 787,000 vehicles for the first quarter, profitability was severely impacted by extensive discounting and increased marketing expenses. These measures were implemented in an attempt to remain competitive and manage inventory levels, particularly in the United States market.

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The market's reaction to Nissan's earnings announcement was swift and severe, with the company's share price plummeting as much as 11 per cent&nbsp;before closing down 7 per cent&nbsp;at 485 yen, marking its most significant single-day decline since February.

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Nissan attributed its struggles in the U.S. market to an ageing product lineup and a shift in consumer preference towards hybrid vehicles. These challenges in the world's largest economy compound the difficulties Nissan faces in China, where it has been striving to regain market share amidst intense price competition with local manufacturers.

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In response to these challenges, Nissan recently announced the suspension of production at one of its eight factories in China, operated through a joint venture with local partner Dongfeng Motor. This move is part of the company's efforts to optimize its operations in the face of ongoing market pressures.

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As Nissan navigates these complex market dynamics, the company's ability to adapt its strategies, refresh its product lineup, and improve operational efficiency will be crucial in determining its future performance and market position in these key global markets.

Nissan Motor, the Japanese automotive giant, has significantly revised its annual outlook downward following a dramatic decline in first-quarter profit. The company's performance was severely impacted by aggressive discounting strategies in the United States market, leading to financial results that fell far short of analyst expectations and triggered a sharp decline in Nissan's stock price.

Nissan Motor, the Japanese automotive giant, has significantly revised its annual outlook downward following a dramatic decline in first-quarter profit. The company's performance was severely impacted by aggressive discounting strategies in the United States market, leading to financial results that fell far short of analyst expectations and triggered a sharp decline in Nissan's stock price. The unexpected poor performance has introduced a new set of concerns for investors, who must now grapple with uncertainties surrounding Nissan's prospects in the United States. This development adds to existing worries about the company's efforts to revitalize its position in another crucial market, China. For the April-June quarter, Nissan reported an operating profit of just 995 million yen (approximately USD 6.5 million), a stark contrast to the 128.6 billion yen recorded in the same period last year. This figure represents a mere fraction of the 164.4 billion yen average estimate provided by analysts, as compiled by LSEG. Acknowledging the challenging quarter, Nissan's Chief Executive Makoto Uchida stated, "The first quarter was a very tough one for Nissan." However, he expressed confidence in the company's ability to recover, citing plans to address current challenges and introduce new models to the market. In response to these difficulties, Nissan has announced plans to optimize inventory levels in the United States and focus on improving sales quality. The company intends to strengthen its market position by launching new and refreshed models, including the Armada and Murano SUVs, in the latter half of the financial year. Following what has been described as its worst quarterly performance in over three years, Nissan has reduced its operating profit forecast for the current financial year by 17 per cent, bringing it down to 500 billion yen. The company has lowered its retail sales forecast by approximately 50,000 vehicles to 3.65 million units, citing weaker-than-anticipated sales in both the United States and China. The significance of these two markets cannot be overstated for Nissan. The United States and China collectively accounted for half of the company's global sales in the previous financial year and 51 per cent in the first quarter of the current year. They are the only two markets where Nissan sold over 100,000 vehicles in the first quarter, with Japan, the company's home market, ranking as its third-largest by sales volume. While overall sales volume remained stable year-on-year at 787,000 vehicles for the first quarter, profitability was severely impacted by extensive discounting and increased marketing expenses. These measures were implemented in an attempt to remain competitive and manage inventory levels, particularly in the United States market. The market's reaction to Nissan's earnings announcement was swift and severe, with the company's share price plummeting as much as 11 per cent before closing down 7 per cent at 485 yen, marking its most significant single-day decline since February. Nissan attributed its struggles in the U.S. market to an ageing product lineup and a shift in consumer preference towards hybrid vehicles. These challenges in the world's largest economy compound the difficulties Nissan faces in China, where it has been striving to regain market share amidst intense price competition with local manufacturers. In response to these challenges, Nissan recently announced the suspension of production at one of its eight factories in China, operated through a joint venture with local partner Dongfeng Motor. This move is part of the company's efforts to optimize its operations in the face of ongoing market pressures. As Nissan navigates these complex market dynamics, the company's ability to adapt its strategies, refresh its product lineup, and improve operational efficiency will be crucial in determining its future performance and market position in these key global markets.

Nissan sees Q1 profit wiped out due to US discounts, shares fall

Detained auto <a href="http://www.wionews.com/world/carlos-ghosn-resigned-from-renault-on-january-22-192422">tycoon Carlos Ghosn </a>believes his arrest and <a href="http://www.wionews.com/world/wrongly-accused-and-unfairly-detained-ex-nissan-chief-carlos-ghosn-tells-court-188904">the charges against him</a> are the result of a "plot and treason" at his former employer Nissan, he told the Nikkei newspaper Wednesday.

The Japanese business daily quoted <a href="http://www.wionews.com/world/carlos-ghosn-the-allegations-and-the-rebuttals-189028">Ghosn</a> as saying he had "no doubt" that the charges against him were motivated by Nissan executives opposed to greater integration of the firm with its French alliance partner Renault.

It was the first press interview <a href="http://www.wionews.com/world/tokyos-prosecutors-set-to-decide-on-carlos-ghosns-detention-187268">Ghosn has given since his stunning arrest </a>on November 19, conducted in the Tokyo detention centre where he has languished ever since.

A Nissan spokesman hit back immediately, saying that current CEO Hiroto Saikawa has "already categorically refuted the notion of a 'coup d'etat'.

"The sole cause of this chain of events is the misconduct led by Ghosn and (chief of staff Greg) Kelly," the spokesman added.

He said a Nissan probe had uncovered "substantial and convincing evidence of misconduct" and that the firm's focus is "firmly on addressing the weaknesses in governance" that allowed this misconduct to happen.

The 64-year-old Ghosn has been denied bail several times, with the court considering him a flight risk and concerned he could attempt to destroy evidence.

But he again stressed that he "won't flee. I will defend (myself)", according to the Nikkei.

"All the evidence is with Nissan and Nissan forbids all employees to talk to me," he added.

Even his own lawyer has said it is unlikely he will be released before a trial, which could take up to six months to organise given the complexity of the case.

Ghosn faces three separate charges, all of which he denies. He stands accused of under-reporting his income between 2010 and 2015 to the tune of five billion yen ($46 million) and continuing to do so for a further three years.

He also stands accused of a complex scheme to try to pass off personal foreign exchange losses to Nissan and using company funds to reimburse a Saudi contact who stumped up collateral for him.

He said the payment to this businessman, Khaled Juffali, had been signed by "four officers".

'Up and down'

The executive, once feted for his turnaround of the struggling Nissan, has been removed as chairman of the Japanese firm as well as of Mitsubishi Motors. He has also resigned as chairman and chief executive of French company Renault.

He told the Nikkei there was a plan to "integrate" the three companies but insisted it was intended to ensure there would be "autonomy under one holding company."

After Ghosn's arrest, Saikawa referred to the "dark side" of his former mentor's tenure and accused him of having accrued too much power.

But Ghosn rejected the characterisation of his tenure as a "dictatorship."&nbsp;

"People translated strong leadership to a dictator, to distort reality," he told the Nikkei. They did so, he added, for the "purpose of getting rid of me".

Another accusation against him revolves around some $9 million allegedly paid to him from a joint venture based in The Netherlands but Ghosn rejected this, saying the claims of improper payments were "a distortion of reality".

He has also come under fire for luxury houses in Rio de Janeiro and Beirut — which Nissan alleges were paid for improperly via a subsidiary.

He justified these residences on the grounds that he "needed a safe place where (he) can work and receive people in both Brazil and Lebanon."

He stressed that the purchases were approved by the legal department.

Asked about his conditions in the detention centre, Ghosn replied that the situation was "up and down" but said his health was "fine."

Family members have said his detention conditions are overly difficult and even French President Emmanuel Macron has criticised them as "harsh."

The reported comments by Ghosn were the first since a dramatic court appearance earlier this month in which he said he had been "wrongly accused and unfairly detained based on meritless and unsubstantiated accusations".

Detained auto tycoon Carlos Ghosn believes his arrest and the charges against him are the result of a "plot and treason" at his former employer Nissan, he told the Nikkei newspaper Wednesday.

Detained auto tycoon Carlos Ghosn believes his arrest and the charges against him are the result of a "plot and treason" at his former employer Nissan, he told the Nikkei newspaper Wednesday. The Japanese business daily quoted Ghosn as saying he had "no doubt" that the charges against him were motivated by Nissan executives opposed to greater integration of the firm with its French alliance partner Renault. It was the first press interview Ghosn has given since his stunning arrest on November 19, conducted in the Tokyo detention centre where he has languished ever since. A Nissan spokesman hit back immediately, saying that current CEO Hiroto Saikawa has "already categorically refuted the notion of a 'coup d'etat'. "The sole cause of this chain of events is the misconduct led by Ghosn and (chief of staff Greg) Kelly," the spokesman added. He said a Nissan probe had uncovered "substantial and convincing evidence of misconduct" and that the firm's focus is "firmly on addressing the weaknesses in governance" that allowed this misconduct to happen. The 64-year-old Ghosn has been denied bail several times, with the court considering him a flight risk and concerned he could attempt to destroy evidence. But he again stressed that he "won't flee. I will defend (myself)", according to the Nikkei. "All the evidence is with Nissan and Nissan forbids all employees to talk to me," he added. Even his own lawyer has said it is unlikely he will be released before a trial, which could take up to six months to organise given the complexity of the case. Ghosn faces three separate charges, all of which he denies. He stands accused of under-reporting his income between 2010 and 2015 to the tune of five billion yen ($46 million) and continuing to do so for a further three years. He also stands accused of a complex scheme to try to pass off personal foreign exchange losses to Nissan and using company funds to reimburse a Saudi contact who stumped up collateral for him. He said the payment to this businessman, Khaled Juffali, had been signed by "four officers". 'Up and down' The executive, once feted for his turnaround of the struggling Nissan, has been removed as chairman of the Japanese firm as well as of Mitsubishi Motors. He has also resigned as chairman and chief executive of French company Renault. He told the Nikkei there was a plan to "integrate" the three companies but insisted it was intended to ensure there would be "autonomy under one holding company." After Ghosn's arrest, Saikawa referred to the "dark side" of his former mentor's tenure and accused him of having accrued too much power. But Ghosn rejected the characterisation of his tenure as a "dictatorship." "People translated strong leadership to a dictator, to distort reality," he told the Nikkei. They did so, he added, for the "purpose of getting rid of me". Another accusation against him revolves around some $9 million allegedly paid to him from a joint venture based in The Netherlands but Ghosn rejected this, saying the claims of improper payments were "a distortion of reality". He has also come under fire for luxury houses in Rio de Janeiro and Beirut — which Nissan alleges were paid for improperly via a subsidiary. He justified these residences on the grounds that he "needed a safe place where (he) can work and receive people in both Brazil and Lebanon." He stressed that the purchases were approved by the legal department. Asked about his conditions in the detention centre, Ghosn replied that the situation was "up and down" but said his health was "fine." Family members have said his detention conditions are overly difficult and even French President Emmanuel Macron has criticised them as "harsh." The reported comments by Ghosn were the first since a dramatic court appearance earlier this month in which he said he had been "wrongly accused and unfairly detained based on meritless and unsubstantiated accusations".

Ghosn says arrest was result of 'plot and treason': Report

Nissan on Wednesday rolled out new features that will let one of its minivans handle some driving on its own, as a similar system made by US-based Tesla is probed over crashes. 
 
Japan&#39;s number-two automaker said its ProPilot system was designed to let its newest Serena model accelerate, brake, and navigate bumper-to-bumper highway traffic in a single lane. 
 
The technology, which relies on an internal camera to gauge the vehicle&#39;s location, will be available in the minivan next month. 
 
But Nissan warned it was still some way off its goal to put fully self-driving cars on the road by 2020&nbsp;when Tokyo hosts the summer Olympics. 
 
Automakers are focused on creating fully autonomous cars, which would allow drivers to read, watch a movie, or even send emails, but the idea has sparked safety concerns. 
 
Japanese firms, including Nissan and rivals Toyota and Honda, have been taking a gradual approach, focusing on aspects such as self-parking and crash-avoidance technology. 
 
&quot;The point is it&#39;s not fully autonomous driving, but driver assistance technology, so it can&#39;t handle everything for you,&quot; Hideyuki Sakamoto, a Nissan executive vice president, told reporters on Wednesday. 
 
The rollout came as US highway safety officials investigate two crashes, including a fatal accident, involving cars made by Tesla that may have been operating on its pioneering self-drive Autopilot technology. 
 
Tesla boss Elon Musk has defended the company&#39;s technology -- the most advanced driver-assist system currently available to consumers -- as on the balance safer than regular cars. 
 
But worries have mounted that the feature has faults, including not being able to recognise cars halted on the road, and that drivers are being lulled into a false sense of safety and not watching the road. 
 
(AFP)

The system is designed to let its minivan, Serena accelerate, brake, and navigate bumper-to-bumper highway traffic in a single lane

Nissan on Wednesday rolled out new features that will let one of its minivans handle some driving on its own, as a similar system made by US-based Tesla is probed over crashes. Japan's number-two automaker said its ProPilot system was designed to let its newest Serena model accelerate, brake, and navigate bumper-to-bumper highway traffic in a single lane. The technology, which relies on an internal camera to gauge the vehicle's location, will be available in the minivan next month. But Nissan warned it was still some way off its goal to put fully self-driving cars on the road by 2020 when Tokyo hosts the summer Olympics. Automakers are focused on creating fully autonomous cars, which would allow drivers to read, watch a movie, or even send emails, but the idea has sparked safety concerns. Japanese firms, including Nissan and rivals Toyota and Honda, have been taking a gradual approach, focusing on aspects such as self-parking and crash-avoidance technology. "The point is it's not fully autonomous driving, but driver assistance technology, so it can't handle everything for you," Hideyuki Sakamoto, a Nissan executive vice president, told reporters on Wednesday. The rollout came as US highway safety officials investigate two crashes, including a fatal accident, involving cars made by Tesla that may have been operating on its pioneering self-drive Autopilot technology. Tesla boss Elon Musk has defended the company's technology -- the most advanced driver-assist system currently available to consumers -- as on the balance safer than regular cars. But worries have mounted that the feature has faults, including not being able to recognise cars halted on the road, and that drivers are being lulled into a false sense of safety and not watching the road. (AFP)

Nissan rolls out ProPilot auto drive system