Nissan has moved from “volume to value”, abandoning the emphasis on big sales figures, often with discounts, that it pursued for years before the ousting of former boss Carlos Ghosn. The company is now aiming for higher sales margins while limiting costs.
On Thursday, it reported fourth-quarter profit, but said it expected only 1% growth in operating profit for this year, missing expectations.
The shares were down 3.5% in morning trading, after earlier falling 6.3%.
Businesses around the world are warning of declining profitability as they cannot fully pass on rising input costs to consumers and are preparing for further supply chain blockages following the conflict in Ukraine and to the prolonged COVID lockdowns in China.
Archrival Toyota Motor said this week that unprecedented rises in the cost of raw materials could shave a fifth off its annual profit.
The supply chain has become a challenge for the industry because automakers’ assumptions can be quickly changed by real-time events, Nissan chief executive Makoto Uchida said in an interview with Reuters.
The “uncertain situation” around the supply chain – including China’s COVID-19 control measures – poses the biggest risk on the horizon, Uchida said.