Nissan Motor Co announced on Thursday that it expects its profit to increase by 38% this year due to a better outlook for sales. This is a positive development for the Japanese automaker, which has faced several setbacks in recent years, including a strained alliance with partner Renault SA.
Background of Nissan Motor Co
Nissan Motor Co is a Japanese multinational automobile manufacturer that was founded in 1933. The company produces a wide range of vehicles, including cars, trucks, and buses, and has a global presence with operations in over 160 countries.
Over the years, Nissan has faced several challenges, including declining sales, quality issues, and a strained relationship with its partner Renault SA. In 2018, former chairman Carlos Ghosn was arrested in Japan on charges of financial misconduct, which further added to the company’s woes.
Improved Sales Outlook for Nissan
Despite these challenges, Nissan is now optimistic about its future prospects. The company expects to see a 38% rise in profit this year, thanks to an improved sales outlook. According to Nissan’s chief financial officer, Stephen Ma, the company is benefiting from a rebound in demand for cars and trucks, particularly in the United States and China.
In addition to the improved sales outlook, Nissan is also taking steps to cut costs and improve efficiency. The company plans to reduce its fixed costs by more than 300 billion yen ($2.8 billion) over the next four years, as part of its restructuring efforts.
Strained Alliance with Partner Renault SA
One of the biggest challenges that Nissan has faced in recent years is its strained alliance with partner Renault SA. The two companies have been partners since 1999, but their relationship has been fraught with tension and disagreements.
In 2018, the alliance was rocked by the arrest of former chairman Carlos Ghosn, who was seen as a key architect of the partnership. Ghosn was eventually ousted from both Nissan and Renault, and the two companies have been working to rebuild their relationship ever since.
Despite these challenges, Nissan and Renault are still committed to their partnership. In a joint statement issued earlier this year, the two companies said that they would “reinforce and enhance” their alliance, and work together to improve their competitiveness and profitability.
Nissan Motor Co’s improved sales outlook and efforts to cut costs are positive developments for the company, which has faced several challenges in recent years. While its alliance with Renault SA remains strained, the two companies are still committed to working together to improve their competitiveness and profitability.
As the global automotive industry continues to evolve and adapt to new challenges, Nissan is well positioned to succeed with its innovative products and strong brand reputation. By continuing to focus on improving efficiency, reducing costs, and building strong partnerships, Nissan can look forward to a bright future in the years to come.