Nissan Slashes Sales Forecast Amidst Logistics Woes, U.S. Market Hopes
Nissan Motor Corp. has revised its fiscal year 2023 sales forecast due to intensifying competition and logistics problems. The automaker anticipates a significant improvement in the U.S. market in Q4, despite a 42.5% year-over-year plunge in third-quarter net profits.
Nissan initially projected sales of 3.7 million units but has now reduced this to 3.55 million. CFO Stephen Ma attributed this revision to fierce competition and logistical challenges in key markets. Logistics issues, particularly delays at the U.S.-Mexico border, led to lost sales in North America.
In the third quarter, Nissan's net profits dropped by 42.5% year over year. This was due to a logistical capacity shortage, supply chain disruptions, and challenges with third-party logistics providers. Rising costs, including foreign exchange rates, restructuring costs, and retroactive supplier payments, also impacted the company's margins. However, Nissan has secured additional transport capacity from Mexico to the U.S. and Canada via the Atlantic, expecting improved logistics in Q4.
Despite the setbacks, Nissan has not revised its full-year financial guidance. It still expects a net profit rise of 75.8% year over year to 390 billion yen ($2.69 million) in FY 2023. The company is optimistic about a significant improvement in the U.S. market in Q4, as logistics issues are expected to ease.
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