Nissan has taken a big hit with its first-quarter operating profit dropping by 29 percent.
Its dismal performance can be chalked up to several factors, including slumping sales, worsening change rates between the Japanese yen and the U.S. dollar, discontinued discounts, and the rising cost of raw materials.
In addition, there has been no lower number of vehicles exported to North America and Europe from Japan, resulting in a 9.5% fall in overall U.S. sales volume.
Nissan also tempered expectations on its second-quarter forecast.
“We’re not expecting a big turnaround in profitability in the second quarter,” said corporate VP Joji Tagawa. “But from the second half, new models will improve our position on incentives and enhance profits.”
To improve performance, Nissan has taken on several initiatives including limiting the number of fleet deliveries and reducing dealer sales incentive programs, would have become popular with the Rogue.
It is also expecting the launch of its new subcompact Kicks, the new Altima, and the Infiniti QX50, which it hopes will reverse its fortunes.