Embattled Japanese carmaker Nissan on Thursday reported an annual net loss of $6.2 billion, the company's worst financial result for 20 years, amid the ongoing disruption caused by the COVID-19 outbreak and the lingering effects of a scandal involving former CEO Carlos Ghosn
MOSCOW (Pakistan Point News / Sputnik - 28th May, 2020) Embattled Japanese carmaker Nissan on Thursday reported an annual net loss of $6.2 billion, the company's worst financial result for 20 years, amid the ongoing disruption caused by the COVID-19 outbreak and the lingering effects of a scandal involving former CEO Carlos Ghosn.
According to a statement published on the Nissan Motor Corporation's website, the annual losses amounted to 671.2 billion Yen ($6.2 billion).
"The global COVID-19 pandemic substantially impacted Nissan's production, sales and other business activities in all regions. The impact is reflected in Nissan's financial results for fiscal year 2019," the group wrote in the statement.
The automaker had reported a 319 billion yen ($3.0 billion) profit in the fiscal year to March 2019.
In a separate statement, the carmaker announced a new four-year plan to transform the company and to achieve sustainable growth. As part of the measures, Nissan will close its plant in the Spanish city of Barcelona.
The company will also pull its Datsun brand from the Russian market and reduce the number of models it produces from 69 to 55.
"Our transformation plan aims to ensure steady growth instead of excessive sales expansion. We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability," Nissan CEO Makoto Uchida said in the statement.
The company also announced that fixed costs will be reduced by a further 300 billion yen ($2.8 billion).
In recent years, the company has had to manage a scandal involving former CEO Carlos Ghosn, who stepped down from his role in 2017. Ghosn was arrested one year later at Haneda Airport in Tokyo amid allegations that he underreported his salary and was placed under house arrest. This past December, the former Nissan CEO fled from Japan to Lebanon, and an Interpol notice was issued for his arrest.
