Is Nissan going bust?

[Mr Bump]

View: https://www.youtube.com/watch?v=qt8F7eV4UUk


Nissan has announced it will cut 9,000 jobs from its global workforce as part of “urgent measures” to stem losses.
The Japanese car manufacturer said it would also reduce global production capacity by 20% and cut its sales budgets after it slumped to a loss in the three months to the end of September.

Carmakers around the world have been struggling with falling demand for vehicles in key markets, while also competing with Chinese competitors on electric vehicles in particular.
The announcement will cause uncertainty for the company’s 130,000-strong workforce. However, it is thought the UK factory in Sunderland is unlikely to be affected.

The company lost 9bn yen (£45m) in the quarter, compared with a 191bn yen profit in the same period last year. It also revised down its sales and profit forecast for the second time this year.
The company said it was facing a severe situation as it battled with higher costs for sales and in its factories, as well as having too many cars with dealers in the US in particular, which can force the company to give steep discounts.

 

[Mr Bump]

 

[Mr Bump]

Nissan has a Baa3 rating from Moody's and BBB- from Fitch Ratings, both the lowest investment grade,
while S&P ranks it BB+, the highest junk score, Bloomberg-compiled data show

 

[welshwizard645]

Best thing that ever happened to Nissan UK was being allowed to develop the Qashqai and Puke, that I believe kept Nissan plodding along as the rest our their product line had been labouring for quite a long time.

 

[gman]

Could be worse...the EV company Fisker has gone bust.

 

[Mr Bump]

Could be worse...the EV company Fisker has gone bust.

View attachment 438988

yeah Fisker was never going to survive.
In China alone there are over 90 EV companies
loads of them will go bust as well
massive oversupply in China and also the race to the bottom with Tesla and BYD selling well below cost
to grab market share

 

[Mr Bump]

its all about there debt....

Nissan will have a year of breathing space in 2025 before hitting a record bond maturity wall as concerns mount about its ability to generate cash.

The automaker and its group firms have about $1.6 billion of debt due next year, a slight decrease from 2024, but that figure will jump to around $5.6 billion in 2026, the most in Bloomberg-compiled data going back to 1996. The debt due in 2026 is in yen, dollars and euros.

The deluge of bond repayments comes as the company’s debt-default insurance costs climb to peaks last reached in March 2023 and yield premiums on yen and dollar bonds have risen to the highest levels this

 

[Mr Bump]

more bad news for Nissan , it has over 600,000 vehicles sitting around unsold

While production of Nissan’s vehicles decreased by 8.3% from July to September, the automaker’s global inventory has increased. Since March 2022, Nissan’s global inventory of vehicles at dealerships and its company stocks, stood at 250,000 vehicles, reports Automotive News. Between April to June, it increased to 640,000 vehicles. The automaker originally planned to get a handle on its global inventory, but the figure still stands at around 640,000 vehicles between July to September.