The financial performance of Japan’s Nissan Motor Co for the months of April and May were much better than what was being expected, said the president of the auto maker during the annual general meeting (AGM) of the company on Tuesday.
This announcement by the top executive of the company to the company’s shareholders was preceded by a forecast of the company last month that it would be able to break even in terms of its sales for the fiscal year that began on April 1.
“But we already see signs of recovery,” said Nissan’s Chief Executive Officer Uchida. “Thanks to the strong results of our ongoing efforts over the past year, Nissan’s performance for April and May is better than our plan,” Uchida added.
Uchida further added that “doing everything it can” to help the company to avoid three consecutive years of losses was being done by the global team of the company.
The global shortage of semiconductor chips used in the cars has also forced Nissan to make adjustments to its production targets, just like most of the other major auto makers of the world. According to reports quoting sources with knowledge of the matter, this Japanese auto company is planning to temporarily halt production at some its factories in Japan and Mexico during this month.
“As we pay close attention to the market trends and adjust production of models, we are minimising the negative impact of the semiconductor supply issue on the plant utilisation rate,” Uchida said.
Plans were being drawn up in the company to try and make up for the loss in production that has happened so far because of the global chip shortage within this fiscal year, he added, and said that Nissan was also taking measures to ensure stability in its supply of parts.
Even though the company was not currently willing to provide any forecasts on dividends, Uchida said that the company will try and generate sufficient net cash so tha it can resume payments of dividends as soon as possible.
Replying to a question by a shareholder who asked Uchida about recent media reports in Japan published last week about the auto maker planning to discontinue production of its Skyline sedans, the top executive of the company said that the company had made no such decisions of ending production.
(Adapted from Investing.com)