Nissan cuts unit sales forecast, sees more profits
Nissan Motor lowered its full-year unit sales forecast due to a lack of semiconductors and other auto parts. Still, the Japanese automaker was still able to sharply increase its profit projection, thanks to better performance in North America and a weaker yen.
Nissan said on Tuesday it expects its annual sales volume for the year through March 2022 to be 3.8 million units. That’s 600,000 less than his previous forecast.
A global shortage of computer chips, as well as parts supply disruptions in pandemic-stricken Southeast Asia, have forced Nissan to cut production.
However, the company raised its net profit forecast to 180 billion yen, or nearly 1.6 billion dollars. This represents a tripling in yen terms from the previous outlook.
Nissan kept discounts low in North America and other markets, which boosted profit margins.
A larger-than-expected drop in the value of the yen against the dollar also improved the company’s earnings outlook.
Nissan chief operating officer Ashwani Gupta said the impact of the chip shortage on the auto industry has been greater than expected and the uncertain business climate is expected to continue for some time.