Nissan: poor financials play out in production cutbacks

Nissan has announced production cutbacks in the US and China following disappointing recent financial results and falling sales in both markets. In Q1 for FY2024/25 the company cut its operating profit outlook to ¥500bn (US$3.3bn), down nearly 17% from previous guidance of ¥600bn. In response, the Japanese financial markets hit Nissan’s share price hard; analysts especially disliked the heavy level of price discounting in the US which eroded much of the profit reported in Q1.