Nissan’s slow US sales torpedo global profits

AutoExec Summary
Nissan’s sales of the newly launched Rogue have led to a surplus of unsold previous-generation models, prompting the introduction of incentives and resulting in a significant expense that nearly wiped out the parent company’s operating income. CEO Makoto Uchida attributed the downturn to the company’s US operations and adjusted the full-year financial outlook. Operating profit fell by 99 per cent, and net income by 73 per cent in the first quarter. Sales globally stagnated, with a decline in North American volume. The company plans to reduce inventories by 20 per cent by the end of the year and expects a decline in operating profit for the full fiscal year. Nissan also revised its sales outlook for the year, expecting lower global retail deliveries.

Brands mentioned: Nissan