Nissan hit hard by recession

Nissan has posted total operating losses of £1.4bn for the 2008 financial year, ending 31st March 2009. However, the news is better than the maker had feared it would be given the current downturn in new car sales, and it comes as Nissan is set to take on more temporary staff at its Sunderland plant to cope with increased demand.

Worldwide vehicle sales were down by almost ten percent compared to the previous year, with 3.4 million sold. Europe suffered the worst slump, with a massive 16.7 percent dip. Only China experienced a rise in sales.

And although Nissan reckons it will sell even fewer cars this year, estimating just over three million units in total, it also expects to curb its losses a little, predicting a net loss of around £1.2bn. Nissan chief Carlos Ghosn promised to “manage through the crisis,” saying: “2009 will be another challenging year. Our priorities will be preserving cash, improving our profitability and pursuing deeper synergies within the Renault-Nissan Alliance."

Nissan's results show that while the car industry isn't out of the woods yet, there's at least a glimmer of hope that things are starting to turn for the better.

Mark Nichol