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Nissan posts $6.2 billion annual loss and unveils plan to cut costs

TOKYO — Nissan outlined a new plan on Thursday to become a smaller, more cost-efficient carmaker after the coronavirus pandemic exacerbated a slide in profitability that culminated in its first annual loss in 11 years. Under a new four-year plan, the Japanese manufacturer will slash its production capacity and model range by about a fifth to help cut 300 billion yen from fixed costs. It will shut plants in Spain and Indonesia, leave the South Korean market and pull its Datsun brand from Russia as part of a strategy unveiled on Wednesday to share production globally with its partners Renault and Mitsubishi. "I will make every effort to return Nissan to a growth path," Nissan Chief Executive Makoto Uchida said, adding that the company had learned from its past mistakes of chasing global market share at all costs. "We must admit failures and take corrective actions," he said, adding that starting with top-level managers, the company had to break its inward-looking culture which in the past has stymied efforts to deepen cooperation with France's Renault. Uchida said improving the company's cash flow was its biggest challenge. He reiterated that Nissan's cash liquidity was good even though it had negative free cash flow of 641 billion yen in the year ended in March. Nissan declined to give any forecasts for its current financial year which started in April due to the uncertainty created by the coronavirus pandemic. It also declined to give details on how many jobs it was cutting. In what is Nissan's second recovery plan in less than a year, Uchida pledged a return to profitability with a core operating profit margin above 5% and a sustainable global market share of 6%. Nissan posted an annual operating loss of 40.5 billion yen for the year to March 31, its worst performance since 2008/09. Its operating profit margin was -0.4%. The automaker said on Thursday that it sold 4.9 million vehicles last year, up from an earlier estimate of 4.8 million. That was still the second decline in a row and a fall of 11% from the previous period but meant Nissan clung on to its position as Japan's second biggest carmaker, just ahead of Honda and a long way behind Toyota. Pandemic pressure Even before the spread of the novel coronavirus, Nissan's slumping profits had forced it to row back on an aggressive expansion plan pursued by ousted leader Carlos Ghosn. The pandemic has only piled on the urgency to downsize.

Nissan union wants French to stop meddling with Renault alliance

Nissan is getting some unexpected reinforcements in its ongoing battle with the French government over its involvement in Renault. Its Japanese union, which has traditionally been a very hands-off entity, issued harsh criticism for the French government's attempts to assert control over its alliance partner. According to Bloomberg, this is the first time in 16 years that Nissan's union has weighed on the company's affairs, and it's stating its position on the matter in no uncertain terms. The union called France's attempt at scoring double voting rights within Renault "unacceptable and against the intended spirit of the Alliance." "We support the numerous attempts of Nissan to engage with the French government to find a balanced and constructive solution that will benefit and strengthen the Alliance," the union said in a statement obtained by Reuters. It's unclear what impact the union speaking out will have on the current power struggle between Renault-Nissan CEO Carlos Ghosn (shown above) and the French government, but we doubt it'll contribute to any quicker of a conclusion. Related Video: News Source: Reuters, BloombergImage Credit: Itsuo Inouye / AP Government/Legal Nissan Renault France renault-nissan alliance

Nissan dealer: 2016 Leaf will have 110-mile battery option

Leave it to a local dealer in Indiana to spill the beans about the beans about the changes to the upcoming 2016 Nissan Leaf. Maybe. There's a dealer near Indianapolis called Andy Mohr Avon Nissan near Indianapolis and its website says that the new Leaf will come with two battery packs. The dealer says that the 2016 Leaf will come with two different battery trim levels. You can choose a car with the same pack as the 2015 Leaf has (and, thus, still get 84 miles of official range) or you can opt for the higher trim level, which will give you, "as much as 25 percent increased capacity, delivering a driving range of as much as 110 miles." Now, let's take all of this with some grains of salt and combine it with previous rumors. First, this does not seem to be any sort of information about a second-gen Leaf. We've heard plenty of rumors that the 2016 Leaf will have a 30-kWh battery pack that can go over 100 miles, but this is sort of a version 1.5 Leaf, since this longer range will be available in an updated current model and not yet the next-gen model. Nissan's Paige Presley, from Nissan's EV and technology communications, said simply that she, "can't comment on future products." We spoke with Joe Kline, the internet manager at Andy Mohr Avon Nissan, and he said that it was likely that the information about the two battery packs came directly from Nissan but he wasn't 100 percent sure. Kline said that the Andy Morh Avon Nissan dealership probably sold around 10 Leafs in the past year, mostly because the infrastructure isn't as built out as it could be in central Indiana. "They're not quite up to par with the charging stations around here," he said. With the longer-range version, the dealership's website says, "the new Leaf can find a home in even more garages." Related Video: Featured Gallery 2015 Nissan Leaf View 12 Photos News Source: Andy Mohr Avon Nissan via Green Car Reports Green Rumormill Nissan Electric