Japanese automaker Nissan reported a record net loss of 700 billion to 750 billion yen (equivalent to 4.91 billion to 5.26 billion US dollars) for the fiscal year ended in March. The company suffered significant financial losses as a result of the depreciation of assets in the process of restructuring production. About this informs Reuters.
These losses became the largest in the history of Nissan. As the third-largest automaker in Japan, the company is cutting staff, reducing production capacity and closing factories.
As a result of the review of manufacturing assets, Nissan recognized more than ¥500 billion in impairment charges in regions such as North and Latin America, Europe and Japan. Additional restructuring costs exceeded 60 billion yen. Currently, the new general director of the company, Ivan Espinoza, is trying to stabilize the situation.
“We are taking the smart step of revising our annual forecast based on a careful analysis of our results and the book value of our production assets.” said Espinoza, who took over at Nissan this month.
In February, the company held talks with Honda about a possible merger to create a new auto giant worth $60 billion. Negotiations ended in vain due to Honda’s demand to make Nissan a subsidiary. Nissan also lowered expectations for annual operating profit to 85 billion yen, about 30% less than previously forecast.
