((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Nissan will cut 9,000 jobs and 20% of its production capacity
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CEO Uchida cites unexpected demand for hybrids in the United States as a challenge ahead
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The minister refuses to comment on possible government aid
(Updates with closing stock price)
Nissan Motor shares
7201.T fell 6% in Tokyo on Friday, a day after the Japanese automaker announced it would cut 9,000 jobs and 20% of its production capacity as it faces sales woes. in China and the United States.
The stock posted its biggest one-day decline since August, ending the session at 385.2 yen, just above its four-year low.
Japan's third-largest automaker on Thursday cut its full-year operating profit forecast by 70 percent and scrapped its net forecast entirely due to restructuring, which is expected to cut costs by 400 billion yen ($2.61 billion) during the fiscal year ending at the end of March.
Like many global automakers, Nissan is struggling in China where BYD 002594.SZ and other domestic rivals are gaining market share with affordable electric vehicles and gasoline-electric hybrids equipped with advanced software.
Nissan is also facing difficulties in the United States, where it does not have a range of hybrid vehicles at a time when this type of vehicle is in high demand.
Chief Executive Makoto Uchida said Thursday that Nissan had not anticipated the sudden popularity of hybrids in the United States and that demand for revised versions of major models had not been as strong as hoped.
Nissan's restructuring is the latest chapter in a long attempt to revitalize its business, which has never fully recovered from the 2018 ouster of its former president Carlos Ghosn and the reduction of its partnership with Renault RENA. PA.
On Friday, Minister of Economy, Trade and Industry Yoji Muto refused to comment to journalists who asked for his opinion on possible government support for Nissan.
Tokai Tokyo Intelligence Laboratory analyst Seiji Sugiura placed much of the blame for Nissan's hybrid vehicle situation in the United States on management, which he said focused primarily on selling new models of electric vehicles and vehicles with traditional engines.
“The company released its mid-term plan in the spring, but ultimately there was no sense in it. I think their understanding of the situation is completely wrong,” Sugiura said.
Nissan's mid-term plan announced in March called for 30 new models over the next three years, an increase in global sales of one million vehicles, an operating profit margin above 6% by the end of the year. financial year 2027 and a total return for shareholders greater than 30%.
($1 = 153.2000 yen)
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