Nissan to cut output in May, sees record operating loss

Nissan Motor Co. on Tuesday said it is expecting to post its annual operating loss in 11 years. The automaker has been met with challenges as dwindling demand for cars continued due to the COVID-19 pandemic.

With the sharp decline in sales, Nissan will cut its output by 78% in May, according to a Reuters report on Monday.

The second-largest manufacturer of vehicles in Japan said in a statement that its forecast sees an annual operating loss of more than ¥45 billion ($419.7 million). This would be significantly lower than the operating profit of ¥85 billion that was forecasted in February.

The company would also be expecting to post a net loss of ¥95 billion in contrast to the ¥65 billion in net profit.

Nissan is currently facing its worst financial performance since the global financial crisis of 2008, when it had posted an operating loss of ¥137.9 billion.

However, Nissan said that it would be delaying the announcement of its annual financial results and restructuring plan to May 28 after it has finalized the results.