One of the issues facing Japanese makers is the value of the Yen. It is currently trading at less ¥90:$1, which means decreased revenue.
Nissan Motor Co., Ltd. today announced its global production in August decreased 13.7% year-on-year to 217,954 units. In the U.S., production decreased 31.4% to 33,598 units. In China, production saw a significant increase of 60% year-on-year to 44,441 units marking an all-time record for the month of August.
Global sales for Japan’s third largest automaker decreased 0.2% year-on-year to 299,400 units, compared to the same month last year. Year-to-date sales are down 13%.
China recorded a record month in August, with sales up a significant 67% year-on-year to 62,937 units due to continued demand for Teana, Sylphy and Tiida models. Sales in other regions were down 26% from the previous year to 37,994 units
Export business was off sharply in August decreasing 36% year-on-year to 38,566 units. Exports to North America, where Nissan traditionally earns half of its profits, declined 29%. There are unconfirmed reports coming out of Japan that claim Nissan will drop production of its Q56 full-size SUV from Mississippi back to Japan next years. Nissan has lost billions on its failed foray into full-size pickup trucks and SUVs for the U.S. market.
Nissan’s forecast for the full fiscal year is an operating loss of ¥100 billion ($1.05 billion based on ¥95:$1) and net loss of ¥170 billion yen ($1.79 billion). One of the issues facing all Japanese automakers is the value of the Yen. It is currently trading at less ¥90:$1, which means decreasing revenue for all export dependent automakers at the same time that sales are depressed.