Good guy Nissan: Overestimated sales forecast, will compensate suppliers

Nissan has revised its financial forecast downwards for fiscal year ending 31-March 2024. Forecast sales volume has been lowered from 3.55 million to 3.44 million. This second downward revision, after the company’s earlier announcement in February, which trimmed down its forecast from 3.77 million to 3.55 million.

Forecasts for net revenue, operating profit, and net income has also been trimmed down to 12.6 trillion Yen (down 400 billion Yen), 530 billion Yen (down 90 billion Yen), 370 billion Yen (down 20 billion Yen) respectively.

“Were we overoptimistic?” said CEO Makoto Uchida, in a report by Automotive News Europe. “Yes, it’s true we did not reach what we anticipated.”

“We charted sales plans for each model and found out some models have difficulty reaching sales expectations,” he added.

However, will be compensating its suppliers, who had invested into their businesses based on Nissan’s forecasted numbers.

“Suppliers have been making investments based on the assumptions we gave, and the volume decline is our fault. So, to reduce this burden on suppliers, we are making an additional booking,” said Uchida.

The revised forecast sales volume is still 4.1 percent higher than the 3.31 million units sold by Nissan in the last financial year.