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Nissan Motor earnings down, will close Barcelona plant

Christian Fernsby |
Nissan Motor fiscal year 2019 consolidated net revenue declined to 9.8789 trillion yen, resulting in an operating loss of 40.5 billion yen and a net loss1 of 671.2 billion yen.

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Topics: NISSAN   

This includes costs associated with restructuring and impairments by 603.0 billion yen as Nissan focused on operational and efficiency improvements to transform the business. Free cash flow for the automotive business was a negative 641.0 billion yen.

Nissan maintains sufficient liquidity to steer through this challenging business environment. At year-end, cash and cash equivalents for the automotive business totaled 1.4946 trillion yen. Automotive net cash was 1.0646 trillion yen. In addition, the company continues to have access to approximately 1.3 trillion yen in unused committed credit facilities. In response to the coronavirus pandemic, Nissan raised an additional 712.6 billion in funding between April and May.

Nissan has decided to close its factory in Barcelona, resulting in the loss of about 2,800 jobs.

The closure was announced on Thursday by the automaker's CEO, Makoto Uchida.

Nissan made the decision to end its operation in Barcelona despite proposals made by the local authorities to keep the plant running, the Spanish government said in a statement.

The closure would cost Nissan as much as 1 billion euros ($1.10 billion), the government said, urging the automaker to look at other options.

The Barcelona factory builds pickups and vans.

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