Things are starting to get bad for Nissan. The automaker just announced a 39 percent drop in fiscal second quarter profit and is today saying that it will cut its earnings outlook and will cut output and its workforce as a response to the depressing U.S. auto market.
Nissan halved its earlier profit forecasts expecting operating profit to drop 65.0 percent to $2.62 billion with net income to drop 66.8 percent to $1.55 billion. Nissan will cut global production by 200,000 units this year and will also cut 3,500 jobs in the U.S., Spain and Japan.
Nissan will offer 0-percent loans and will also offer some lease incentives. 0 percent factory financing will be available on Nissan’s top-selling 5 models including the Altima, Rogue, Sentra, Versa and Murano. Lease incentives include $199-a-month for the Altima sedan and Rogue SUV. It will also extend the $339-a-month lease for the new 2009 Nissan Maxima.
The No.3 Japanese automaker will also introduce a low-priced Versa sedan next month starting at $9,990 – about $2,000 less than the existing models.
Source: Automotive News (Subscription Required)