Nissan posts first loss in 7 years

small_logo_nissan.jpgNissan is in the red for the first time in 7 years, taking a 54% plunge in group net profit for the 2006 financial year ending March 31 2007, and a net income drop of 11%. Global yearly vehicles sales for the year dropped 2.4% to 3.5 million cars, and US yearly sales dropped 4% to 1 million cars.

Nissan says the drop from 152.4 billion yen to 70.6 billion yen was due to job-reduction costs and higher taxes despite improved quarterly vehicle sales of USD$23.6 billion. Nissan recently cut 1,500 jobs in Japan, roughly 4.5% of it’s workforce – it’s first staff reduction in Japan in eight years as it aims to match lower production in a shrinking Japanese domestic market. It also trimmed it’s US workforce in 2 factories by 775 workers.

Ghosn says this is not something to be alarmed about. “It’s not a near-death experience like 1999. We haven’t gone in the ditch. But we’ve had an early wake-up call. And it is not our nature to hit the snooze button on the alarm and go back to sleep. So we respond with all the lucidity, the vigilance and the sense of urgency that drove our revival.”

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • drM (Member) on Apr 28, 2007 at 8:53 pm

    i tell u what charles,

    u bring on the next GTR, and how much u gonna put the price on, we will definitely buy it.provided it can smoke all the sub 4.0 liter supercars.Then the sales will definitely going up again.

    money is not a problem.

    I can see off my one of my kidney, a slice of my heart, left ears, teeth, and since GTR will be equipped with semi auto SMG flipped pedal gear, I just need 2 off my 5 fingers.

    come one charles, bring on the next GTR.

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  • ryan_foong80 (Member) on Apr 28, 2007 at 9:05 pm

    i think only few units on the road must be very expensive!…

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  • LittleFire85 (Member) on Apr 28, 2007 at 9:34 pm

    Nissan worst enemy is Toyota and honda, and his weakness is his high cc V6 engine. In Japan ppl want low cc cars.. that why Nissan cars cant sell well in Japan and they always in no.2 or no.3 position.. Even nissan safety is good but they need something to stand out from the crowd. Not only the V6 engine.. something like hybrid.

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  • aesthari (Member) on Apr 28, 2007 at 9:51 pm

    The GTR caters only to a niche market, the moneymakers are the everyday cars we drive. Nissan has small displacement cars, but my guess is that they may not be priced competitively enough, take the Nissan Teana coming here for example.

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  • blazerSST (Member) on Apr 28, 2007 at 10:28 pm

    Nissan has never sparked anything in my head, honda i think VTEC, mitsu i think Evo's, toyota vvti or their car models. Nissan i think sunny 130y.

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  • nmh (Member) on Apr 28, 2007 at 11:51 pm

    nissan…..unbreakable VQ series engine which have various award

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  • Din (Member) on Apr 29, 2007 at 12:40 am

    i hope this piece of news doesn't affect any plans to bring in the Latios to malaysia, since we are not a major market and all…..

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  • ab (Member) on Apr 29, 2007 at 12:50 am

    think nissan think sunny? we car enthusiasts should be gratefull to nissan. which jap manufacturer makes sylvias, skylines, fairladys??? their only miskake is they concentrate on making sport cars rather than more mass production cars.

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  • drM (Member) on Apr 29, 2007 at 1:47 am

    roll out that GTR, means,

    let say 1 unit = 70K pound sterling

    so, assuming 10 fans buy that, so, equally 700K for only 10 units.

    let say one honda Jazz, priced at 10K,

    for honda to match nissan, they must sell at least 100 units.

    hahahahaahahahahhahahahahahaah..if only things are that easy…

    and dont forget Charles, there are billions of speed freaks in the world, waiting for the next GTR.

    roll out the next GTR.

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  • mystvearn (Member) on Apr 29, 2007 at 4:29 am

    lack of new models have any effect on it? Or cross platform, hate the Renault looks go nissan vice versa

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  • mits27 (Member) on Apr 29, 2007 at 8:42 am

    US dropped 4%, but nissan has just launched some new models, maybe the sale will improve on this years, still nissan has to compete with toyota and honda, which is most american favorite japanese brand. For malaysia, lack of new model is big problem, like nissan sentra…

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  • LittleFire85 (Member) on Apr 29, 2007 at 7:33 pm

    Thx to Nissan Tan Chong.. I heard they refuse to sell the share to Nissan Japan a few years ago.. that why Nissan japan always delaying the new stock and give us the old stock to sell.. look at the old Nissan cefiro still sell in Malaysia while other country are already selling Teana already..

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  • calvin5189 (Member) on Apr 29, 2007 at 11:14 pm

    when u say toyota, = corolla, camry, unser, avanza, innova, wish

    but nissan …….sunny 130Y

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  • tokmoh (Member) on Apr 30, 2007 at 6:01 am

    @LittleFire85

    Tan Chong edi bring in the Teana, bt it's fuggin xpnsv, oni hard-core Nissan fans would buy it (a soft way to say the Teana is a loser). For everyone else, it makes more sense to get the Accord or Camry.

    Bravo Ghosn. With pure and true hard work, I hope Nissan will be back in the green.

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  • LittleFire85 (Member) on Apr 30, 2007 at 6:06 am

    well i just know that, actually the Teana is imported units not CBU unit like the old cefiro's do.. And the Teana is dammed expensive.. RM230k, If i have that cash i better buy a BMW or Audi.. And why not buy the Camry 2.4L more cheaper..

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  • transformer (Member) on Apr 30, 2007 at 7:14 pm

    Nissan has great cars from Sunny 120Y, Sunny 130Y, Sunny/Sentra, Cefiro, Skyline, Silvia, Safari, Pathfinder & etc… more recent the X-Trail and Murano

    Popular tuners engine are SR-series, RB-series and their highly acclaimed VQ-series….

    Wish Livina Geniss comes soon

    and the new Sentra, Wingroad, X-trail, Serena hit our shores…

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  • Infinitt (Member) on Apr 30, 2007 at 8:41 pm

    Think nissan..think sunny too..very tahan car maa…

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  • kei9 (Member) on May 01, 2007 at 5:11 am

    it'll gonna be the highest profit when the GT-R and the new 350Z launches! go go go nissan!

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  • ATOMECHTRONICZ (Member) on May 01, 2007 at 5:19 am

    U think every ppl rich like u ? Bring on the next GTR! easy to say ! but hard to do! ask ppl buy a kancil pun sakit kepala la..GTR? dun dream n go to sleep early la..

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  • kei9 (Member) on May 01, 2007 at 10:42 pm

    we don even say dat were rich! its just fun to see it here!

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