Over the next five years, a number of new vehicles in the growing Chinese market is being planned to be launched by Japan’s Nissan Motors. The company’s chief executive said that the he planned launch included those for electrical cars that could be crucial for the Japanese automaker to return to the path of profits.
"The recovery in the Chinese market has been very remarkable, and our key segments have returned to the previous year's level if not slightly better," CEO Makoto Uchida said at a press conference at the Beijing auto show via a video link from Japan. "I expect this rebound to continue, but we need to watch for signs of trouble," he added.
By 2025, the launch of nine new and re-designed electric models in the biggest auto market of the world is being planned by Nissan, said Uchida and the company's China boss, Shohei Yamazaki. These vehicles will include plug-in electric vehicles and hybrid electric cars that are charged with a gasoline engine.
Investors have been concerned about the second largest auto maker of Japan with the company issuing a warning of a record $4.5 billion loss this year as the novel coronavirus pandemic has impeded the planned turnaround of the company. The comments from Uchida at this juncture could provide some good news to investors.
Over the years, Nissan had been involved in a strategy of rapid expansion that resulted in the company making dismal margins and an ageing portfolio and therefore the strategy of Nissan and its success in the Chinese market is a key part of the company’s effort to recover from the mess. The company has blamed the current state of affairs of the company on its mismanagement by former boss Carlos Ghosn which was arrested in Japan in November, 2018 on charges of financial misconduct – that have been denied by Ghosn. who was arrested for financial misdeeds which he denies.
With a reduction in annual fixed costs of 300 billion yen ($2.84 billion), Nissan has also set a strategy of focusing on each of the three biggest markets of the company – its home market of Japan, China and the United States.
But despite the turnaround strategies of the company, it reported a fall of 2.4 per cent in sale growth lasts month after recording a modest growth every month since April in the Chinese market, even as a strong recovery is being witnessed in the Chinese automotive market.
In comparison, Nissan’s Japanese rivals Toyota and Honda reported significantly contrasting performances with both the companies recording rapid sales growth since the impact of the novel coronavirus pandemic had started to ebb away in the Chinese market.
A 27.2 per cent year on year sale growth was reported for the month of August by Toyota while a 19.7 per cent growth was reported by Honda in the same month.
Nisan plans to issue $8 billion in dollar-denominated bonds, the company said last month.
The funds thus generated would be used to repay other debt, said a Nissan spokeswoman.
"Although Nissan continues to have sufficient levels of liquidity, we are seeking to strengthen our liquidity position in order to ensure smooth implementation of our business transformation plan," she said.
(Source:www.journalpioneer.com)
"The recovery in the Chinese market has been very remarkable, and our key segments have returned to the previous year's level if not slightly better," CEO Makoto Uchida said at a press conference at the Beijing auto show via a video link from Japan. "I expect this rebound to continue, but we need to watch for signs of trouble," he added.
By 2025, the launch of nine new and re-designed electric models in the biggest auto market of the world is being planned by Nissan, said Uchida and the company's China boss, Shohei Yamazaki. These vehicles will include plug-in electric vehicles and hybrid electric cars that are charged with a gasoline engine.
Investors have been concerned about the second largest auto maker of Japan with the company issuing a warning of a record $4.5 billion loss this year as the novel coronavirus pandemic has impeded the planned turnaround of the company. The comments from Uchida at this juncture could provide some good news to investors.
Over the years, Nissan had been involved in a strategy of rapid expansion that resulted in the company making dismal margins and an ageing portfolio and therefore the strategy of Nissan and its success in the Chinese market is a key part of the company’s effort to recover from the mess. The company has blamed the current state of affairs of the company on its mismanagement by former boss Carlos Ghosn which was arrested in Japan in November, 2018 on charges of financial misconduct – that have been denied by Ghosn. who was arrested for financial misdeeds which he denies.
With a reduction in annual fixed costs of 300 billion yen ($2.84 billion), Nissan has also set a strategy of focusing on each of the three biggest markets of the company – its home market of Japan, China and the United States.
But despite the turnaround strategies of the company, it reported a fall of 2.4 per cent in sale growth lasts month after recording a modest growth every month since April in the Chinese market, even as a strong recovery is being witnessed in the Chinese automotive market.
In comparison, Nissan’s Japanese rivals Toyota and Honda reported significantly contrasting performances with both the companies recording rapid sales growth since the impact of the novel coronavirus pandemic had started to ebb away in the Chinese market.
A 27.2 per cent year on year sale growth was reported for the month of August by Toyota while a 19.7 per cent growth was reported by Honda in the same month.
Nisan plans to issue $8 billion in dollar-denominated bonds, the company said last month.
The funds thus generated would be used to repay other debt, said a Nissan spokeswoman.
"Although Nissan continues to have sufficient levels of liquidity, we are seeking to strengthen our liquidity position in order to ensure smooth implementation of our business transformation plan," she said.
(Source:www.journalpioneer.com)
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