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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.

With Nissan dragging it down, Renault predicts a worsening year

PARIS — Renault warned revenue may decline this year, scrapping a previous goal, after first-half profit was hit by weakening car demand and an earnings collapse at alliance partner Nissan in the wake of the Carlos Ghosn scandal. Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4% to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped 13.6% to 1.65 billion euros. "Given the degradation in demand, the group now expects 2019 revenues to be close to last year's," Renault said — abandoning an earlier pledge to increase revenue before currency effects. A broad-based auto sales downturn has rattled the sector, prompting profit warnings and compounding challenges for Renault and Nissan as they struggle to turn the page on the Ghosn era. Their former alliance boss is now awaiting trial in Japan on financial misconduct charges he denies. Renault's bottom line was hit by an 826 million-euro drop in earnings from its 43.4%-owned partner. Nissan is cutting 12,500 jobs globally after an earnings collapse that it is keen to blame on Ghosn's leadership. But Renault's own performance - reflected in an operating margin that declined to 5.9% from 6.4% the year before - compares less favorably with domestic rival PSA Group. The Peugeot maker bucked the downturn with a record 8.7% profit margin unveiled on Wednesday. Alliance tensions flared after Ghosn's November arrest, worsened when Renault tried in vain to merge with Nissan then Fiat Chrysler, and may be affecting operational performance, investors fear. Citi analyst Raghav Gupta-Chaudhary flagged a lower-than-usual 258 million euros in joint purchasing savings for Renault. "We thought this would be weak in light of the well-documented difficulties with the alliance," he said. Renault blamed falling sales in France, as well as Turkey and Argentina, for a 7.7% revenue drop at its core automotive business, whose profit margin slid to 4% from 4.5%. Operating free cash flow also suffered, coming in at a negative 716 million euros as investment jumped by 742 million euros to 2.91 billion. Renault, which is counting on model launches including a new Clio mini to boost performance in the second half of 2019, nonetheless reiterated pledges to deliver positive full-year cash flow and a margin close to 6%. Renault shares were down 0.5% at 52.02 euros as of 0800 GMT in Paris, after initially falling as much as 2.7%.

AAA ranks Tesla Model S P85D best green car of 2015, Versa is best value

Reviewers from all parts of the automotive world just seem to love the Tesla Model S, whether it's the pragmatists at Consumer Reports or the enthusiasts at Car and Driver. You can add one more to that list because the 2015 P85D grabs the top spot in AAA's fifth annual Green Car Guide, after Tesla's win last year too. The organization's ranking of 88 green models also names the 2014 Nissan Versa SV as the best value in the segment. To take the victory, the P85D had to score the most points over 13 categories, including emissions, acceleration and cargo capacity, and it won handily with 94.87 points. There was nearly a tie for second place, though. The 2015 Volkswagen e-Golf SEL Premium scored 85.5 points, and the 2014 BMW i3 narrowly came in third with 85.4. The best value award is based on the as-tested price per point scored. So while the Versa SV only had 64.5 points overall, its low price meant that each one cost just $249. Second place went to the Versa Note SV with 64.63 points at $260 each, and third was the Hyundai Accent GLS with 61.1 points for $269 each. Keep in mind, AAA's ranking doesn't attempt to find the most environmentally friendly vehicle, rather it tests the green car segment to give recommendations to buyers. Battery electric powertrains, compressed natural gas, clean diesel, hybrids, partial zero-emissions vehicles, and simply models with high fuel economy are all counted by the organization. The results are published in a 160-page magazine, which you can read here. It also offers suggestions on economical driving and explains some of the fuel-saving tech currently available. Related Video: Top Green Vehicle is a 2015 Tesla, According to Fifth Annual AAA Green Car Guide ORLANDO, Fla., April 20, 2015 The 2015 Tesla Model S P85D earned the top score in the 2015 AAA Green Car Guide, the motor club announced today. The Palo Alto-based automaker's car is featured with more than 80 other green vehicles in the 2015 AAA Green Car Guide. The best green car value award went to the 2014 Nissan Versa SV. To help those in the market for a green car or truck, the 160-page, comprehensive fifth annual AAA guide reviews 88 battery electric vehicles, compressed natural gas-powered (CNG) vehicles, clean diesels, hybrids, partial zero emission vehicles (PZEVs), and vehicles with high fuel economy.